Why Tesla’s $121 000 Model S price in China makes business sense latimes com

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TESLA Model S – 60 kWh Auto

Why Tesla’s $121,000 Model S in China makes business

By Jerry Hirsch

January 23, 8:46 a.m.

Tesla said it would sell the big version of its Model S electric sedan in China for about While that’s an eye-popping to American car shoppers, it actually a restrained, strategic approach for the Alto automaker.

The starting of the Model S with the 85 kWh battery will be $81,070 the same as in the About $36,000 in Chinese and taxes, and another $4,000 to the car across the Pacific Ocean up the rest.

Tesla also sells a less expensive version in the But the big battery version gives the car a of about 265 miles per charge and is the more popular choice.

pricing structure is something of a for Tesla, but we want to do the right for Chinese consumers,” the company in a statement Thursday. “If we to follow standard industry we could get away with twice as much for the Model S in as we do in the U.S.”

Chinese officials, however, criticized foreign companies of especially when it comes to or lifestyle goods.

Mercedes-Benz, for example, prices its top at about double what sell for in the U.S.

“We to treat our Chinese customers as well as we’d treat in any other country,” Tesla

It also is smart business.

TESLA Model S – 60 kWh Auto

is the biggest, and fastest growing, market in the world.

Car companies nearly 22 million vehicles in last year, a 14% gain, to forecasting firm LMC Automotive. compares with the U.S. the best car market globally, automakers sold 15.6 vehicles, a nearly 8% gain.

Tesla already is experiencing demand for its luxury electric car in the and Europe, said Elaine an analyst at Jefferies Group. the house.

The automaker sold cars last year, 1,000 more than as it ramped up manufacturing at its factory in Calif.

“Although the company declined to out international sales, we estimate 2,000-2,500 were delivered of the U.S.,” Kwei said.

Chief Executive Elon has said the company will sales of its Model X, an electric later this year and a third-generation electric car, will start at about within three years.

TESLA Model S – 60 kWh Auto
TESLA Model S – 60 kWh Auto


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