Tesla Price in China

Tesla Price in China

This morning's WSJ article shows China sort of slamming Automakers for their prices in China, relative to the US. A Range Rover that sells for the equivalent of $308,800 in China sells for $88,000 in the U.S. Now, I do not know how much of that represents import and other duties, but it seems that if there is gouging on the part of carmakers, there is a great opportunity for Tesla to reduce this gap and get a huge share of the upscale market. Does anyone know the price of a Tesla in China?

justineet | August 24, 2013

I agree...if the luxury automakers have been gauging the Chinese, they have opened a big opportunity for Tesla in China --- the biggest market in the world for automobiles including for luxury autos.

carlk | August 24, 2013

There is no such thing as gauging for anything other than life's necessities. No one is forced to buy any of those things. Value is alway determined by the market.

negarholger | August 24, 2013

+1 carlk

expenses go up very fast away from your home base. Comparing to US prices is not justified.

nickjhowe | August 24, 2013

Elon is on record that saying they will not price to local markets.

Price will simply be US retail + import duties + reasonable local handling costs + local tax.

CalabasasKid | August 24, 2013

+1 Carlk & Kleist

Any talk of over charging is preposterous. First of all, I've heard rumors that import tariffs on cars in China can be upwards of 200%. There are so many wealthy people in China today that it's plain staggering. If they don't want to pay the high prices, they should complain to their very "accommodating" and "transparent" govnt or just buy a cheaper type of car or go back to riding bicycles.

rhkostick | August 24, 2013

My Chinese dad told me that in the news in HK people are putting down 50k deposits

CalabasasKid | August 24, 2013

I'm telling you all, by next year TM will be selling upwards of 75000 MS's per year

Jamon | August 24, 2013

+1 nickjhowe - I think in the Q2 earnings call I heard Elon say he's not aware of any auto makers in the world who follow the international pricing strategy that tesla is planning to use. Yet another reason to love the Tesla revolution!

justineet | August 24, 2013 are missing the point. Some of the automakers were jacking their price by great percentage above tarrif and transportation cost. In other words, they were making tons more of profit from individual cars in some market like China compared to USA. have a good point. But if Tesla goes in with less profit margin than them they will end up hurting unless they adjust quickly..

justineet | August 24, 2013 are missing the point too. Some of the automakers were jacking their price by great percentage above tarrif and transportation cost. In other words, they were making tons more of profit from individual cars in some market like China compared to USA.

negarholger | August 24, 2013

@justineet - did you see the books? What are their actual costs? Until then it is just an assumption.

justineet | August 24, 2013 has been well reported..they are making significant more profit per car in some markets.....

justineet | August 24, 2013

significantly more

negarholger | August 24, 2013

@justineet - reporters like Broder? You read the news about Tesla... how many times do the reports get it right? I guess they make assumptions too.
Question: $200k net Italian price Lambo... how much needs go on top of that for warranty repairs in China? Depends on how often that thing breaks down - we don't know that. What is the policy - do I fly in the spare parts and a specialist? What are the customs/taxes for the spare parts...

bradslee | August 24, 2013


As I said in another thread, Chinese auto market,though it is the largest in the world, is a completely different beast. Although China now is a member of WTO, it is NOT a free market society as we Americans know. For protecting its own EV industry (you will be surprised to find out how many EV manufacturers out in China with substantial governmental subsidiaries) and controlling the imported luxury automobiles, the government will force the imported cars through its special duties/taxes to be sold in an astonished price. Tesla Model S, though TM has yet announced its official price in China, one can reasonably expect its price in a range of $160K to $290K.

Brian H | August 24, 2013

gauging = measuring
gouging = overcharging

carlk | August 26, 2013

One thing Tesla should not do is to price the car too low. That will only encourage unscrupulous middlemen to buy them out and create a black market to profit from it. People who really want the car may not be able to buy even if they are willing to pay the price. Just let the market to decide what the car is worth and price it accordingly whether it's $100K or $300K. Are you from China? I could understand where you're coming from if you are but do you think you can actually get the car if it's priced at a level that a lot more people whould want to buy than Tesla could supply the car?

jbunn | August 26, 2013

I believe CalabasasKid nailed it. I think it's import tarrifs or taxes on the China end. Supports their industries. This is no new news.

justineet | August 26, 2013

@Clark...not too low but price it to make similar profit margin in the USA. Don't think black market situation will be created as long there is adequate supply. If middlemen try to hoard cars in that situation, they will end up bankrupt or will be forced to sell it for similar price as the official one. are correct the Chinese government levies huge tarrif on some products to protect their own industries. They are allowed to do that under WTO as a "developing" nation on some products, not all.