Tesla Motors, Inc. (NASDAQ:TSLA) has selected South Korea as the next step to further its international expansion plans. The company has launched a Korean website and started taking online orders for Model S, Model X and Model 3. It also established a limited company, Tesla Korea Ltd., in Samseong-dong in Dec 2015, and hired people for sales, technical support and marketing operations in the nation.
Tesla has started taking refundable deposits of 2 million won (approximately $1,771) for Model S pre-orders, 5 million won ($4,427.48) for Model X and 1 million won ($885.5) for Model 3. However, the full price of the vehicles for South Korea has not been revealed.
Moreover, Korean customers will have to wait to receive their Tesla vehicles. Reportedly, the company is planning to start test drives of Model S in South Korea by the end of 2016 and launch Model X in 2017. As Model 3 deliveries are slated to start in the U.S. in late 2017, when the vehicle will be available in South Korea remains uncertain.
Tesla will open a store in Shinsegae’s Starfield Hanam in Gyeonggi Province next month. There have also been media reports that stores will be opened at Samseong-dong in Gangnam and Lotte World Tower in Jamsil.
As South Korea is the world’s 11th largest auto market, this expansion should be beneficial for Tesla. The electric carmaker also plans to make Model 3 available in many new markets, including India, Brazil, South Africa, New Zealand, Singapore and Ireland.
Currently, Tesla carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks include The Goodyear Tire & Rubber Company (NASDAQ:GT) , Fox Factory Holding Corp (NASDAQ:FOXF) and Gentex Corp. (NASDAQ:GNTX) , each carrying a Zacks Rank #2 (Buy).
TESLA MOTORS (TSLA): Free Stock Analysis Report
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