Today Tesla Motors announced the launching of its China-based online design studio for the Model S.
Tesla is pricing the 85-kwh Model S including shipping , fees, and taxes at $121,262 according to Google’s online conversion calculator, or as Tesla puts it, 734,000 CNY at a $6.05 exchange rate.
This price, says the company, makes the car very inexpensive, and it explains its rationale – much of which we’ll quote as the tone of “A Fair Price” written by Tesla is personal, and we think it’s best to let it characterize its motives for itself.
“This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the U.S.,” said the company in its statement. “But we’re doing things differently, even if it means that some people might look at the price and mistakenly think it must somehow mean the Model S has less value than its competitors.”
Tesla continued that Model S price is much lower than would-be competitors “simply because we want to treat our Chinese customers just as well as we’d treat customers in any other country,” it said.
“That means the price of a Model S in China is the same as the price of a Model S in the U.S., adding only unavoidable taxes, customs duties and transportation costs,” it said. “We’re not even factoring in the cost of the free-to-use Supercharger network that Tesla will build across China.”
Tesla says it expects the lower pricing than it says it could charge will mean some competitors in China “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.”
Tesla noted the Model S is highly awarded, has received great reviews, any mud thrown would be false.
And, it said, it decided to “take a chance anyway.
The way it derives the 734,000 CNY at 6.05 exchange rate is:
$81,070 US price
$3,600 Shipping & handling
$19,000 Customs duties & taxes
The company did not say how many pre-orders it has, what the status is of the person who trademarked the Tesla logo, and focused on the news above only.
Two 85-kwh versions are available on its Web site, but Tesla is already well at work attempting to prove its trustworthiness with its pricing policy.
“We care about fairness, and we care about transparency,” said the company. ”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.”