Tesla makes retail push into South America with new store in Chile
Electric vehicle maker Tesla (NASDAQ:TSLA) opened its first South American store last week at an upscale mall located in Santiago, Chile. A launch event at the store was reported to have attracted a large crowd. While Tesla (TSLA) has a retail presence in Mexico, the store in Chile marks a new direction for the Austin-based company.
The Chilean government has a target to sell only electric vehicles by 2035, but the initiative is seen as aggressive with EV-adoption still at a low level in the region and the high prices of Teslas (TSLA) pricing some consumers out of the market. wary of high prices and limited charging station networks.
Per Reuters, Tesla (TSLA) took some of its first publicly known steps into South America in September by registering the business in Chile with the purpose of “the import, export, manufacturing, marketing, distribution and sale of vehicles, especially electric vehicles.” The registration also included other commercial activities like the generation and supply of energy and electricity.
Shares of Tesla (TSLA) are down 24.4% on a year-to-date basis and have traded flat over the last 52 weeks. Short interest on TSLA is at 2.9% of the total float.