Tesla Motors Inc. (NASDAQ:TSLA) enters into a deal with China Unicorn to build 400 new charging terminals

According to the latest news, Tesla Motors Inc. (NASDAQ:TSLA) will be signing up a deal with China to establish 400 of its power stations in that region. It is important to note here that China has become the biggest market for the electric automaker companies; however, the sales of Tesla and other electric cars were hampered due to the lack of charging stations in the very region.

China is no doubt the biggest market for established automakers, and most o f the companies balance their sales losses in the region of Europe and United States from the Chinese market. As for the developing companies, like Tesla Motors, China is a great way to market their products.

News has it that Tesla Motors Inc. (NASDAQ:TSLA) recently signed up for a deal with China, whereby the automaker will establish its charging stations all across the very country.

According to a report released by Bloomberg, Tesla is working side by side with Unicorn, the second largest mobile operator in China, to establish the stations in around 120 cities at the outlets of Unicorn.

Tesla also plans to open up 20 new super charging stations for its Model S. It is pertinent to note here that super charger stations are 200 percent more efficient than the ordinary power stations of Tesla.

China has many automaker companies that offer electric cars but the customers usually do not buy them because of the lack of charging stations; this move by Tesla is made with a hope to increase the demand of the vehicles in order to seize the larger share of the market.

Another problem with the electric cars is that there is no standard charger size; meaning that every car has different plugs and holes, and so the vehicle cannot be connected to the power station if the person does not have the right connector. Similarly, if the person has the right connector but the power stations’ sockets have different designs, the car cannot be charged.

Some private entities took the matters in their own hands in order to solve the charging problem. For instance, in July, a Chinese businessman who has Model S Tesla car had to pay the costs of installation of 16 stations that fell on the Beijing to Guangzhou route.

The businessman carried out a survey in order to collect and list down the preferences of the public as to where they want the charging stations to be; he then installed the charging stations on locations which were in close proximity to parking areas and hotels.

The stocks of Tesla Motors Inc. (NASDAQ:TSLA) rose by 2.21 percent when the news of the agreement reached the market. The company, on the last trading day, September 01, 2014, started its stocks at a price of $268.70 and closed at a price of $269.70, after hitting the highest figures of $272. The company has a market capitalization of $33.61 billion with an EPS (earnings per share) of -$1.35.