US-China geopolitical tensions do not present “much of a risk” to Tesla’s long-term ambitions to further expand its leading market share in China, according to the US-based executive who formerly oversaw the electric vehicle (EV) maker’s Shanghai operations.
The company’s market share in China is still growing strongly, with demand exceeding supply, said Tom Zhu, Tesla’s vice-president of global products and manufacturing, the company’s second-in-command behind CEO Elon Musk.
“As long as you offer a product with value at an affordable price, you don’t have to worry about demand,” he said at Tesla Investor Day in Austin, Texas, on Wednesday. “I’m not too concerned about the market share in China.”
When asked whether US-China tensions will challenge Tesla’s business in China, Zhu said the company will continue to do well despite geopolitical uncertainties.
Tom Zhu speaks as a new Tesla experience store opens near West Lake on August 18, 2015 in Hangzhou, Zhejiang Province of China. Photo: Getty Images
“We create a lot of jobs in the local community and for our suppliers, and we contribute a lot to the local economy,” said Zhu, who previously oversaw the US carmaker’s sprawling Shanghai factory. “I think as long as we’re needed in this country, I don’t see there is much of a risk of that.”
