Tesla's CEO Elon Musk recently traveled to Beijing to celebrate the first deliveries of the Model S electric sedan. He also took the opportunity to announce that Tesla will begin building cars in China within the new three to four years, "China is very important to the future of Tesla."
China is currently experiencing a growing air pollution problem, which is prompting the government to work on ways to increase the adoption of electric vehicles in the country. One of the biggest hurdles is that China does not have the infrastructure to support electric vehicles, but Tesla is going to help launch a charging network in the country some time next year.
"In dollar terms I think over time we'll probably end up investing hundreds of millions of dollars in charging infrastructure in China," Elon Musk stated.
Beijing has set a goal of putting five million alternative energy-powered vehicles on the road by 2020. Another hurdle for Tesla will be for the Chinese government to change its import durties on cars like the Tesla Model S. Right now the Tesla Model S is also not eligible for China's electric vehicle incentives, so it makes the car much more as expensive than it should be. Right now the Model S is priced around $115,000 in China, which is 50 percent more expensive than in the U.S.