(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.

Some industry watchers say it was caused

by Tesla's own lack of coordination,

given the company had benefited from legislation

that helped to fast track construction.

Musk has said German bureaucracy

and activists' environmental concerns

over water usage and the plant's impact

on local wildlife are why the project is behind.

He tweeted that the factory wouldn't use as much water

and that trees in the area were originally planted

to be turned into cardboard.

The delay of the Berlin plant shows

how even a superstar CEO

can't get around German approval processes.

- It's still organized kind of like a startup

with a charismatic leader

who basically controls everything from the top down,

which makes it very hard

for a company to deal with local regulatory issues.

It needs strong management on the ground,

which it doesn't really have here.

Maybe it needs a CEO and a real board.

That could, in the long run,

hinder Tesla on its path to growth.

- [Narrator] So if Elon Musk wants

to convert Tesla into a truly global player,

the billionaire CEO may have to buckle up

and prepare for a bumpy ride.

(upbeat music)