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Electric car giant Tesla (NASDAQ:TSLA) unveiled its maiden South American store amidst much fanfare at a plush shopping center in Santiago, Chile, last week. Reports suggested that the launch event drew a considerable crowd, signifying the heightened interest in electric vehicles in the region. While Tesla (TSLA) already has a retail presence in Mexico, the inauguration of the store in Chile represents a strategic foray into new territory for the Texas-based company.
Chilean government’s ambitious target of eliminating the sale of traditional vehicles by 2035 appears to be driving the shift. However, the adoption of electric vehicles remains at a nascent stage in the area due to high prices and the scarcity of charging infrastructure, deterring some potential buyers.
According to Reuters, Tesla (TSLA) first made its presence felt in South America in September by formally registering its business in Chile. The scope of the registration encompasses various activities, including the import, export, manufacturing, marketing, distribution, and sale of vehicles, with primary emphasis on electric automobiles. Additionally, the registration also covers the generation and provision of energy and electricity, underscoring Tesla’s holistic approach towards sustainable energy solutions.
Year-to-date, Tesla (TSLA) stock has witnessed a 24.4% decline and has remained flat over the past 52 weeks. Currently, short interest in TSLA stands at 2.9% of the total float.
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