Model S pricing in China both risky and fair, says Tesla

Jan 23, 2014
4

Tesla discussed its Model S pricing for the Chinese market yesterday, doing so alongside the launch of its online design studio in the nation. For Chinese buyers, the Model S will come with a 734,000 CNY price tag, a figure the auto maker has described as both risky and fair in comparison to its competitors' prices.

Says Tesla, auto makers often significantly boost the pricing of their vehicles in China, such as doubling the cost, which was not something Tesla Motors was interested in doing. The company has settled on a 734k CNY price tag, which it says accounts for things like taxes and duties, but doesn't factor in costs for the construction of the Supercharger network in China and such.

The pricing of the car may be fair for Chinese consumers, which was the goal for Tesla, but it also poses some risks. Consumers may view the Model S as inferior to competitors' cars because of the significantly lower pricing, though Tesla is quick to point to its awards and ratings to remind potential buyers that is not the case.

Beyond that, the company's competitors could also use the pricing against Tesla, using it to peg the car as an inferior product because it is cheaper. Regardless, says Tesla Motors, "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."

SOURCE: Tesla Motors


Must Read Bits & Bytes