Tesla Motors Inc (NASDAQ:TSLA) started selling their Model S EV in China in the month of April. They own and operate some supercharger stations in North America and Europe and let their customers charge their vehicles for free. They struck a deal with China Unicom to build 400 charging points in China. Details of the Tesla’s deal were discussed in a Bloomberg article.
According to the article, Tesla Motors Inc (NASDAQ:TSLA) has agreed to a deal with China United Network Communications Corp. (China Unicom), the second largest mobile phone company in China to build 400 charging stations in around 120 cities. Most of these charging points might be positioned at China Unicom outlets.
These charging points would be positioned between cities to ensure a long-distance trip using their vehicles. Tesla Motors Inc (NASDAQ:TSLA) has also joined BMW AG to set up the charging point at various locations in China.
The article also mentioned the Tesla Motors Inc (NASDAQ:TSLA)’s spokeswoman, Peggy Yang’s statement that Tesla and China Unicom are planning to build around 20 supercharging stations, which would enable 16 times faster charging of the EV’s compared to normal charging points.
Chinese central government might also provide around $16 billion (100 billion yuan) to build the charging stations, in an effort to motivate people to buy EV’s and promote ‘green’ cars in China. Tesla Motors Inc (NASDAQ:TSLA) has also struck deals with real-estate companies like Soho China Ltd. and China Yantai Holdings Co. to position the charging stations on their properties.
The articles cited Yang as saying that the equipment will be provided by Tesla Motors Inc (NASDAQ:TSLA) and the land for charging points will be provided by China Unicom, according to the deal. Tesla’s customers will be allowed to charge their EV’s for free at these charging stations.
One of Tesla Motors Inc (NASDAQ:TSLA)’s shareholders is Andor Capital Management, led by Daniel Benton. The hedge fund holds around 1.25 million shares of the company.