Trying To Grow The Business, Tesla China Begins Accepting Customer Trade-ins

In the burgeoning Chinese marketplace where Tesla has had its ups and down already, the California automaker is working with used car traders to purchase customers’ existing vehicles so they can apply the money toward a Model S.

The cooperative agreement is for now in Beijing, Shanghai and Hangzhou and Automotive News reports the value of the used car will be deducted from the cost of the $104,000-and-up Model S.

This latest used-car trade-in deal follows this month’s resignation by the head of China operations Veronica Wu after less than nine months on the job. Wu herself replaced Kingston Chang who was hired by Bentley of China.

Tesla has priced the Model S with only unavoidable duties and transportation fees to try and offer an unusually fair deal, it says of a country where surcharges on top of surcharges are more the norm.

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Exact reporting of its sales following discrepancy between registrations and deliveries and other bumps in the road have however obscured reports that vary as to how the company is precisely doing.

But Tesla’s aspirations remain focused on the world’s largest vehicle market, and Tesla reports it already has presence in six cities with nine stores in total.

A growing charging network is being facilitated also with subbed-put help, in this case with China Unicom and Soho China Ltd.

These companies are building charging stations and reprted are 700 power points in 70 cities, which Tesla says is the biggest market and second-biggest network following the United States.

Deliveries of the Model S began in April, and Tesla CEO Elon Musk said within three-four years it expects to be producing Teslas in China presumably for local consumption.

Automotive News