Q: "Can the Model 3 have a big impact on the Japanese market, where the average car still dominates?"
Answer: "I think the Model 3 is likely to have a big impact in every market. The Model S is a premium car. It's a very full-featured car. It's meant to be a technology leader, with things like advanced autopilot capability. It's in the class, in a way, of a Mercedes S-class or a BMW 7-series, as well as an Audi A8 or A7. The Model 3 is closer to an Audi A4 or BMW 3-series.
But I still think even the Model S is going to do fairly well in Japan. We are seeing steady growth in sales. We are planning to make a big investment in charging infrastructure as well as servicing capability throughout Japan. So you will be able to use the car anywhere in Japan.
We're making a strong long-term commitment to the Japanese market. We really believe in it. But we do think it's something that takes time to build. So, we have to have patience and grow it over time.
I do want to super-emphasize to potential customers that we are very committed, long term, to the market in Japan and making sure they have an amazing experience. We don't have supergrand ambitions. It's not like we expect to be, like, the leading seller or even remotely close to that.
If you look at our sales last year, worldwide, it was only about 32,000 cars. That was for the entire world. And this year, maybe, we'll be a little bit above 50,000 cars. So, we're only talking a few thousand cars here. It's not a huge number. The Model S will continue to be a very exclusive, special, car, but I do want to make sure people know that we are going to be absolutely supportive of any customers in Japan.
They shouldn't have such worries as, "Is there going to be support or charging capability?" We're going to make sure that we invest whatever it takes in order to have people in Japan have a great experience.
As for the charging infrastructure, we're also going to make sure that all of our charging stations are either directly or indirectly solar powered. We'll buy utility power that's coming from solar panels, or we'll have solar panels on the charge station itself. There will be no impact to the electrical grid in Japan. And the supercharging stations for Tesla are always free."
He is very explicitly speaking of the Model S. Otherwise, he would say, "The Model S and Model X will be and continue to be very exclusive cars..." instead of "The Model S will continue to be a very exclusive, special, car..." right after his statement of 50,000 cars. Moreover, it is incredibly unusual to give new guidance in an interview, especially in a foreign country. Moreover, There is absolutely no reason for him to do it one week before the actual earnings call. Also, there is no reason that Tesla should guide down. They beat their Q1 guidance after all.
