Developing Further Super EVs to Expand Market Share

At the Tesla Motors Japan showroom, visitors can see a variety of exhibits related to Tesla cars, from photographic panels showcasing innovative car manufacturing using PC batteries to a wide range of body color options.

Tesla is an electric sports car manufacturer founded in 2003 in Palo Alto, known in Silicon Valley. It features a carbon fiber body with a mid-mounted electric motor and lithium-ion battery. Chairman and CEO Elon Musk is one of the founders of the online payment system company PayPal, and it is said that he used the proceeds from selling the company to eBay to fund its establishment.

Chairman and CEO Musk, who believes "Japan, with its high interest and appreciation for cutting-edge technology and a sophisticated automotive fan base, is a suitable market for the Roadster," sent a video message for the showroom's unveiling. Following this, Kevin Yu, Director for Asia Pacific, gave a speech, stating, "Tesla is not a push-type (forcing sales) company, but rather a pull-type. We will enter the Japanese market gradually."

Mr. Yu noted that the Tesla Roadster's 0-100 km/h acceleration time of 3.7 seconds is "faster than a Ferrari," and because it is the first imported EV eligible for the Ministry of Economy, Trade and Industry's "Subsidy Program for the Introduction of Clean Energy Vehicles, etc.," its price of approximately 10 million yen after a subsidy of up to 3.24 million yen is "cheaper than a Porsche."

In 2010, Tesla Motors agreed with Daimler to develop battery packs and chargers for a prototype of their A-Class electric vehicle. Additionally, they contracted with Toyota to develop the electric powertrain for the RAV4 electric vehicle. The latter was scheduled to be unveiled at the Los Angeles Auto Show in November 2010. Toyota has already purchased $50 million worth of Tesla stock.

"Tesla currently has eight showrooms in the United States, six in Europe including London and Monaco, and the Aoyama store is the first in Asia. In addition to Japan, sales in Asia will initially be in Hong Kong and Singapore, and we plan to gradually expand the number of stores," said Mr. Yu.

Tesla Motors Japan initially believed that the high price of 20 million yen would be acceptable to environmentally conscious affluent individuals in leadership positions. Moving forward, following price reductions, new models at more conventional price points are also planned. With the upcoming launch of Nissan's four-door EV, the Leaf, the Japanese market will soon offer a variety of EVs, including the Tesla Roadster.