In the current era, the development of information technology is really strong. Creating technologies to serve the needs of customers is the key to successful businesses. Tesla is no exception, they are one of the few companies that do not spend too much money on advertising, only focus money and resources on research and development. Of course, to do that, they must have a research base and they chose Shanghai to set up their first overseas research base. Not only that, Tesla has invested 188 million USD to expand the capacity of the factory in Shanghai. This can be said to be a very good move for Tesla, but it also has potential risks because of political tensions between the US and China. I say it is a very wise move because China is the most populous country in the world with more than 1 billion people and is gradually overtaking the US to become the richest country in the world. Entering the Chinese market could help Tesla expand its market share. If it wins the majority of the market share in China, Tesla could make China somewhat dependent on their company and they will play an important role in trade between the US and China.
In the
current
era, the development of information technology is
really
strong. Creating technologies to serve the needs of customers is the key to successful businesses. Tesla is no exception, they are one of the few
companies
that do not spend too much money on advertising,
only
focus money and resources on research and development.
Of course
, to do that, they
must
have a research
base and
they chose Shanghai to set up their
first
overseas research base. Not
only
that, Tesla has invested 188 million USD to expand the capacity of the factory in Shanghai. This can
be said
to be a
very
good
move
for Tesla,
but
it
also
has potential
risks
because
of political tensions between the US and China. I say it is a
very
wise
move
because
China is the most populous country in the world with more than 1 billion
people
and is
gradually
overtaking the US to become the richest country in the world. Entering the Chinese market could
help
Tesla expand its market share. If it wins the majority of the market share in China, Tesla could
make
China somewhat dependent on their
company and
they will play an
important
role in trade between the US and China.