China Market situation and outlook

[artsci]

I'm just wondering how Chinese customers in that segment think about those huge differences in price?

China having become the conspicuous consumption capital of the world (supplanting the US's longstanding #1 rank) I'm sure there will be many buyers who are turned off by Tesla's comparative price advantage God forbid they be seen driving around in anything but the most expensive car

 

[Benz]

I have a question to ask here in this thread, because it concerns Chinese customers who decide to buy a Tesla Model S:

"Do Chinese customers have to pay a certain amount (deposit) only once (when they make a reservation for a Tesla Model S)? Or do Chinese customers have to pay another amount as well (after the first deposit)? How many deposits have to be made by Chinese customers until they receive their Tesla Model S?

 

[chickensevil]

At the very least, according to the website, they have to pay twice. Once for the initial deposit and then again to pay for the import fees and such.

I don't know why Tesla is making them do this, when it doesn't happen for any other country, and I would assume that demand is certainly strong enough that if a vehicle got "stranded" they could flip it rather quickly at no loss.

 

[Benz]

At the very least, according to the website, they have to pay twice. Once for the initial deposit and then again to pay for the import fees and such.

I don't know why Tesla is making them do this, when it doesn't happen for any other country, and I would assume that demand is certainly strong enough that if a vehicle got "stranded" they could flip it rather quickly at no loss.

Following reply/quote is from Mark B. Spiegel (on Inside EV's):


"Once a Model S is destined for China (after it’s built but before it’s shipped) Tesla requires an additional $40,000 deposit to pay shipping, taxes and import duties. Thus, if there were (say) 1000 cars en route to Chinese delivery as of June 30th the deposits would have been inflated by $40 million, and thus would have actually been $10 million LOWER than they were at the end of the previous quarter (despite the supposed increase in Model X deposits over that time)."

So, it's true that Chinese customers have to pay an additional deposit of $40,000?

 

[SteveG3]

China having become the conspicuous consumption capital of the world (supplanting the US's longstanding #1 rank) I'm sure there will be many buyers who are turned off by Tesla's comparative price advantage God forbid they be seen driving around in anything but the most expensive car

yes, people are susceptible to that sort of way of looking at things. however, when the higher price is perceived as a function of Western companies "taking us for chumps" and "not having the respect to offer of us as fair a deal as everyone else on the planet", it undermines the perception of prestige in paying the higher price (of course it may not entirely eliminate it, but I think to many it will have a big impact).

 

[mostapasta]

Maoing, what is your source for China Model S import numbers?

I think a good source is the CPCA (China Passenger Car Association), but I'm having a hard time navigating their website via Google translate.

 

[maoing]

unfortunately there is no Model S import number available publicly on media for July. Not sure why?

Maoing, what is your source for China Model S import numbers?

I think a good source is the CPCA (China Passenger Car Association), but I'm having a hard time navigating their website via Google translate.

 

[Johan]

unfortunately there is no Model S import number available publicly on media for July. Not sure why?

Relax, it's coming. The whole office is on holiday in July

 

[chickensevil]

Following reply/quote is from Mark B. Spiegel (on Inside EV's):


"Once a Model S is destined for China (after it’s built but before it’s shipped) Tesla requires an additional $40,000 deposit to pay shipping, taxes and import duties. Thus, if there were (say) 1000 cars en route to Chinese delivery as of June 30th the deposits would have been inflated by $40 million, and thus would have actually been $10 million LOWER than they were at the end of the previous quarter (despite the supposed increase in Model X deposits over that time)."

So, it's true that Chinese customers have to pay an additional deposit of $40,000?

Based on my understanding of the Tesla Chinese website, and when you click the "order" button, yes. You can see this for yourself. Go load the page, change your region at the bottom. Use Google Translate (or just naturally navigate the site, everything is in the same places), click order on the design studio, and on the page where you fill out all of your information, you will see the disclaimer that reads:

订购 Model S 需要支付 RMB 15,000 保证金。在车辆正式到达中国的三周内，需要您支付一笔 RMB 250,000 预付款，用于预纳车辆产生的税金。请选择支付方式：

Order Model S needs to pay RMB 15,000Margin. China's official arrival in the vehicle three weeks, you need to pay aRMB 250,000Advances for taxes generated by the pre-admittance of the vehicle. Please select the payment method:

Now, how that impacts their deposit number is anyone's guess, and how many are caught in this time period is also difficult to guess. Maybe someone in the know can provide a little more insight at least from their experience of it, but bottom line they have to pay this additional ~40k in order for the car to get through customs.

 

[Cankooo1]

Hi everybody
I wanted to share an interesting story about a businessman who bought charging equipment from Tesla and installed it in hotels and restaurants in 16 cities across China

[video]http://english.cntv.cn/2014/08/01/VIDE1406887320509525.shtml[/video]

 

[Benz]

Based on my understanding of the Tesla Chinese website, and when you click the "order" button, yes. You can see this for yourself. Go load the page, change your region at the bottom. Use Google Translate (or just naturally navigate the site, everything is in the same places), click order on the design studio, and on the page where you fill out all of your information, you will see the disclaimer that reads:




Now, how that impacts their deposit number is anyone's guess, and how many are caught in this time period is also difficult to guess. Maybe someone in the know can provide a little more insight at least from their experience of it, but bottom line they have to pay this additional ~40k in order for the car to get through customs.

That's unfair towards the Chinese customers. Right?

 

[RobStark]

That's unfair towards the Chinese customers. Right?

How so?

Universal price plus shipping and any taxes imposed by your local government.

Not collecting that tax, using Tesla funds for it and giving up interest income is in effect a discount vs non Chinese buyers.

 

[Benz]

How so?

Universal price plus shipping and any taxes imposed by your local government.

Not collecting that tax, using Tesla funds for it and giving up interest income is in effect a discount vs non Chinese buyers.

Do customers from other countries also have to pay an additional deposit (after the deposit for making a reservation for a Tesla Model S)?

 

[chickensevil]

Do customers from other countries also have to pay an additional deposit (after the deposit for making a reservation for a Tesla Model S)?

Not that I am aware of. I mean there is a mark up in price just about everywhere outside of the US and yet China is the first I have seen them impose this on anyone... Not sure why.

 

[Benz]

Not that I am aware of. I mean there is a mark up in price just about everywhere outside of the US and yet China is the first I have seen them impose this on anyone... Not sure why.

The price of a Tesla Model S for Dutch customers has been decreased twice in the past year or so. The first time was due to a more favourable conversion rate of the Euro against the US Dollar. The second time they did not give a reason for the price reduction.

 

[chickensevil]

The price of a Tesla Model S for Dutch customers has been decreased twice in the past year or so. The first time was due to a more favourable conversion rate of the Euro against the US Dollar. The second time they did not give a reason for the price reduction.

yeah but they still don't charge people a higher than ~2,500 deposit do they? It does seem weird that they are doing this in China...

 

[30seconds]

yeah but they still don't charge people a higher than ~2,500 deposit do they? It does seem weird that they are doing this in China...

depends on when the import tax is due - on import or on sale. I would suspect that US & EU have some sort of system worked out where the automakers do not have to float the import duties (if there even are substantial ones)

 

[RobStark]

Do customers from other countries also have to pay an additional deposit (after the deposit for making a reservation for a Tesla Model S)?

Does any other country charge over $30k import duties on Model S?

 

[Benz]

Does any other country charge over $30k import duties on Model S?

"Once a Model S is destined for China (after it’s built but before it’s shipped) Tesla requires an additional $40,000 deposit to pay shipping, taxes and import duties."

Meaning that the second additional deposit concerns not only import duties and taxes, but also the cost for shipping.

So, why do Chinese customers have to pay a second additional amount/deposit (which partly is for shipping costs) in advance, while European customers do not have to pay a certain second additional amount/deposit regarding shipping costs in advance?

 

[chickensevil]

So, why do Chinese customers have to pay a second additional amount/deposit (which partly is for shipping costs) in advance, while European customers do not have to pay a certain second additional amount/deposit regarding shipping costs in advance?

^
| ----- This

Because it makes no sense to me...