Tesla Aggressively Defending Its Entry Into China With ‘Cheap’ Model S

Tesla Aggressively Defending Its Entry Into China With ‘Cheap’ Model S

Tesla has promised to build a massive Supercharger network across China, and it’s introducing the fabled Model S to the People’s Republic at the same time. Amidst its entry to the massive market, Tesla has gone on the front foot to aggressively defend the price tag on its luxury electric car.

Most luxury car manufacturers when they enter the Chinese market use it as an opportunity to hike up the price tag. Tesla has chose to keep the price exactly the same in China as it charges in the US (more or less). The problem with that is the potential for it to be described as an “inferior product” due to the price.

You’ll pay 734,000 Chinese Yuan for the Model S in China, which works out to be around $150,000 in Australia. Here’s how that adds up:

$US81,070 US car price $US3,600 Shipping & handling $US19,000 Customs duties & taxes $US17,700 VAT

Tesla has said that it’s committed to luxury electric cars in China, and doesn’t want people getting the wrong idea because they won’t be gauged for the privilege of owning one.

“734k CNY is a big risk for Tesla. We know it’s unconventional. We know we could charge more. We know that our competitors will try to convince Chinese consumers that our relatively lower price tag means the Model S is a lesser car, when the real reason their car costs more is that they make double the profit per car in China compared to the United States or Europe.

“But we decided to take a chance anyway.

“We care about fairness, and we care about transparency. We care about advancing the cause of electric cars in China. And we care about doing the right thing for our customers – no matter where they live.”

Here’s hoping that Tesla continues its march throughout the world and brings its dealers and Superchargers to Australia, sans the so-called Tesla tax! [Tesla]