Tesla’s car prices surprise industry
Print Edition
United States electric carmaker Tesla yesterday surprised expectations when it unveiled the starting price for its Model S vehicle in China at under 1 million yuan (US$165,000).
The price ranges from 734,000 yuan to 1.08 million yuan and gives the Model S a huge price advantage compared with most sports cars sold in China that cost a seven-figure sum. The price is similar to that in the US market, with only tariffs, transport fees and other taxes added as extras. The company said it didn’t take into account exchange rate fluctuations and the cost of building up its Supercharger network in China.
“It is purely because we want to treat our customers in the same way we do in other countries and regions,” the company said.
Tesla said their competitors will try to convince consumers that its product sold at lower prices is not as good as theirs. But it claims that the true reason behind the competitors’ high pricing is that they make twice as much for each car they sell in China than in the US and Europe.
Tesla became the first carmaker to show the breakdown structure of the car price in China. For an entry-level Model S, taxes account for 30 percent of the retail price.
In China, Tesla started accepting orders for the Model S sedans in August.
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