Tesla Motors Inc (NASDAQ:TSLA) has priced the Model S 85 kWh for 734,000 CNY (around $121,000 based on the exchange rate today). In China, the only options for the Model S versions are the 85 kWh and the P85 – the 60 kWh option is a no-go. Tesla Motors also announced the Model S online design studio in China today.
“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 US. 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,” said Tesla in a statement. “Given that the Model S won the 2013 Motor Trend Car of the Year award, received the highest rating of any automobile in history from Consumer Reports (99 out of 100) and achieved the best possible US National Highway Traffic Safety Administration rating, that is certainly not the case.”
The price of the Model S in China is the same as the price of a Model S in the U.S., but the unavoidable taxes, custom duties, and transportation costs was added.
Here is how the price is broken down:
– $81,070 U.S. price
– $3,600 shipping and handling
– $19,000 in custom duties and taxes
– $17,700 VAT
The Chevrolet Volt is offered in China with a price of 498,000 RMB (about $82,000). In the U.S., the 85 kWh version of the Model S has double the price of the Volt, but they did not double the price of the Volt in China, according to InsideEVs.