Elon Musk provides ‘Big’ update on Tesla investment in Japan
Tesla is shifting into high gear in Japan. CEO Elon Musk has announced a ‘big’ investment in the country, focused on expanding the electric vehicle (EV) maker’s service infrastructure and Supercharger network to keep up with increasing demand. According to a report by Nikkei Asia, the expansion comes as Tesla aims to more than double its directly operated service centers in Japan, jumping from 14 locations to over 30 within the year.“Tesla is making a big investment in Japan with service & Superchargers,” Musk said in a post on X (formerly Twitter).
Strengthening the ‘Japanese connection’
In a post, Musk highlighted the deep industrial ties between Tesla and Japan. “Many of the parts in Teslas are made in Japan,” Musk noted, specifically pointing to Panasonic as the company’s “biggest strategic supplier” over the last two decades.By building out its own service centers, which are often located near existing Tesla dealerships, the company hopes to provide better after-sales support, including auto inspections, repairs and bodywork. The report also claimed that to speed up the rollout while keeping costs low, Tesla is moving into “turnkey” properties that were previously used as maintenance shops.The report further mentions that Tesla’s footprint in Japan grew last year, with sales surging 90% to approximately 10,600 vehicles. This is a massive jump from the 5,900 cars sold in 2022. The growth has been attributed to multiple factors:The first is physical presence, Tesla shifted its strategy from online-only marketing to in-person sales, tripling its dealership count to 30. Second is limited-time discounts that made the premium EVs more accessible to Japanese buyers.Thirdly, in areas without a direct Tesla shop, the company partnered with local auto care facilities to provide over 50 additional service points.The rapid expansion hasn’t been without challenges. Tesla admitted that its Japanese unit is facing a steep learning curve, with roughly 60% of its local employees having been with the company for less than six months.
