Subtitles section Play video Print subtitles - [Narrator] This is the Roadster, (Roadster whooshing) the first car Tesla ever released in 2008 and it was developed and produced in California. (upbeat music) (tape whirring) Fast forward 13 years to today and you can find Teslas on the road around the world. - I think we're close to establishing a Tesla presence in Russia. - [Narrator] But Tesla isn't just selling cars abroad, it's also setting up factories around the world. - The key for Tesla's global expansion is going to be expanding manufacturing capacity quickly. - [Narrator] Tesla's push comes at a time when the stakes of going global are big as the EV market will surge 775% to about 35 million cars by 2030 and that can come with pitfalls. (woman shouting in foreign language) - [Narrator] After a spate of bad publicity in China, Tesla sales took a hit in April and auto analysts aren't sure if the company can keep growing as fast in one of its biggest markets. - I think what Tesla's trying to do is really drive home that first-mover advantage, make sure it retains that number one spot. - [Narrator] We analyzed three key speeches by Musk in the past year to understand how Tesla plans to put more of its vehicles on the road all over the world. (upbeat music) First, we go to Moscow. In May, Musk gave a speech via video conference to hundreds of students and tech entrepreneurs at a forum sponsored by the Russian government. He spoke about a wide range of topics from politics and religion to outer space. - We need to establish a self-sustaining base on the moon and up on Mars. - [Narrator] But what really made headlines was when he hinted at future plans for a new factory. - We're building one in Texas, Nevada, California and over time, we will look to have factories in other parts of the world but potentially Russia at some point. - [Narrator] The suggestion came as a surprise because Tesla hasn't sold many cars in Russia. There are around 700 vehicles on the roads there. But Russia could fit a template Tesla has used before, to open factories where it sees market potential. - There are two big electric vehicle markets in the world: China and Europe. Tesla's already in China and now it's opening up plants in Europe. - [Narrator] That new plant is near Berlin and auto analysts expect it to open in early 2022. It's planning to produce half a million cars a year and this would allow Tesla to directly sell its vehicles to European countries instead of importing them from China and the US as it currently does. With the three biggest markets covered, auto analysts have been divided over where Musk will set up shop next. Some say he should double down on the so-called BRIC countries. - Brazil, Russia, India and China, the big automakers are in Brazil because that's a big market. It's probably a good guess that Tesla's looking at that. - [Narrator] And of course, one of them is the untapped market of Russia, which grew by 95% last year. - I think there's a lot of talent and energy in Russia. - [Narrator] Building factories in new countries is a major logistical challenge, especially with a hands-on CEO like Elon Musk. - The big thing for Tesla right now is the Giga Berlin, so it's in Berlin. I've spent a fair bit of time in Berlin working on that. - [Narrator] In a one-on-one video call with The Wall Street Journal's editor in chief in December last year, Musk explained how he liked working closely with his engineers. - When I have spent too much time in a conference room, that's generally when things have gone awry and when I go to spend time on the factory floor, we're really using the cars, that's where things have gone better. - [Narrator] Musk says being on the factory floor is essential to creating good products, especially because his company builds many parts, like the battery packs and develops much of the software in house. But this makes it difficult for Tesla to ramp up production, compared with traditional automakers that are moving into EVs. - It doesn't have the factories, it doesn't have the distribution networks on the ground. Existing manufacturers like Volkswagen, Toyota, GM, they already have a global manufacturing footprint and they already have global distribution networks. So what they're doing is converting existing plants into electric vehicle plants. - [Narrator] Plus building a factory from scratch can cost billions of dollars. And if the company fails to scale quickly enough before other EVs flood the market, a solution may be to think more like a traditional automaker. - It may be able to do this by building its own factories or it may one day have to rely on contract manufacturers, like Foxconn, which builds for Apple, and is now getting into electric vehicles. (upbeat music) - [Narrator] Working in new markets also means navigating different regulatory environments. And in the US, Musk has been known to collide with regulators. - But the best thing that government can do is just get out of the way. - [Narrator] It's a contrast to his public persona in China. - I'm very confident that the future in China is gonna be great. And that China is headed towards being the biggest economy in the world. - [Narrator] In March, Musk sat down for an interview with China's national television channel to talk about the country's economic plan. - What attracts me most about China's five-year plan is the tremendous commitment to a low-carbon economy and ultimately, to a sustainable energy economy. ♪ That I would go anywhere for you. ♪ - [Trefor] That says a lot about how he's been willing to change his approach when working in China. - I really wanna thank the government officials that have been really helpful. - [Trefor] Conflict with the authorities really doesn't work here at all. He obviously knows that and has really done everything he can to praise officials, to praise the Chinese system. - [Narrator] Tesla has taken a conciliatory approach when challenged. For instance, at the Shanghai Auto Show in April, a woman climbed on top of a Tesla vehicle to shout allegations about faulty brakes. (woman shouting in foreign language) - [Narrator] The woman's claims couldn't be verified independently but complaints about Tesla spread across the Chinese internet. The company publicly apologized and pledged to set up a customer satisfaction unit. A few months later, Tesla complied with Chinese regulators to address safety issues with the software upgrade in more than 285,000 vehicles. Musk has been less contentious with Chinese officials and that has played a part in Tesla's success there. For example, the factory in Shanghai was built in 10 months. Just compare that with his plant in Berlin. As far back as 2015, Musk has courted German officials. Even the country's head of state, Angela Merkel. But the plant is still facing a six-month delay.