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Why do UK customers have to pay so much more than US customer for a TELSA? e.g. A model 3 performance costs $54.500 in UK we have the cost is $82.000!

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I am not sure that Giga Berlin will have any impact on prices to be honest. First of all I don't think that Tesla has mentioned anything about switching RHD production to Berlin. They already produce RHD in the States and China; they may leave it as it is. Secondly if they do do the only benefit the UK market may see is the tarrif removal. Which will occur only if batteries are also produced in Berlin (the joys of Brexit). And last but not least it will all go down to demand. If Teslas carry on selling like hotcakes they may just absorb any potential price reductions for extra profit.
 
The price will always be what the market is willing to bear.

Competition and sales volume being too low would inform pricing, but so long as people are buying the cars at the current prices - and it appears they are - then there’s no reason for Tesla to change that.

Stuff like Giga Berlin etc coming online is good news for Tesla in terms of increasing profit margins, but I would not expect it to result in a price reduction necessarily. As said, the price is what it is because the market accepts it. It is only tangentially related to the cost of the parts etc.

i tend to think finance skews pricing a lot anyway. People financing - which I’m sure are the vast majority - don’t care about the total cost, only the monthlies, as buying the car outright was never an option anyway. In that respect the price is somewhat artificial.
 
Moderator comment - If posting replies for the benefit of the original poster, its worth noting that this has all the hallmarks of being a one post and scarper post, ie potential trolling. No recorded online activity from the OP before or since the original post. Hopefully they will be back to take on the comments that people have taken the time to post, but so far, no evidence of that they have even looked at any of the replies.
 
Moderator comment - If posting replies for the benefit of the original poster, its worth noting that this has all the hallmarks of being a one post and scarper post, ie potential trolling. No recorded online activity from the OP before or since the original post. Hopefully they will be back to take on the comments that people have taken the time to post, but so far, no evidence of that they have even looked at any of the replies.

TELSA fanboi realised he's on the wrong forum.
 
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The OP may have scarpered but its worth the answer for others.

The taxation question has been covered by a number of people, the shipping and import duties too, but its also a commercial reality that "cost" and "price" are very different things, you set the price by the local market conditions, and you charge as much as you can to sell the inventory you want to sell. We then enter the complex world of local secondary taxation and incentives, Tesla reduced the M3 LR to keep it under the 50k threshold, they've given up on worrying about that on the M3P pushing the price up, if thresholds were different tax incentives may also mean higher prices to cash in on gov money, for example BIK benefits mean they can probably charge more, as will the lease/company car suppliers because they look at the end user cost to the wallet and compare.
 
How much does it cost to ship a car halfway round the world? I'd expect that once Giga Berlin starts up then the cost may drop in Europe.
Shipping? Well it’s on one fecking big container ship so nowhere near what I suspect you think it costs!

i agree though, it should get cheaper when they ship from Europe (Germany) to the UK. Well in theory anyway as I would expect tariffs to be less …but then again brexit happened and it won’t necessarily be as cheap as it could have been. Just another non positive for leaving EU!

…come on Elon…give us our own UK factory!
 
I would be surprised if they come from Berlin. People seem convinced it’s going to happen simply because it’s in Europe.

We’re pretty much the only RHD country in Europe. Shanghai is surrounded by the RHD markets. If anything the UK is a bit of an outlier.

To me it makes no sense for Berlin to manufacture RHD cars for one country.
 
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I would be surprised if they come from Berlin. People seem convinced it’s going to happen simply because it’s in Europe.

We’re pretty much the only RHD country in Europe. Shanghai is surrounded by the RHD markets. If anything the UK is a bit of an outlier.

To me it makes no sense for Berlin to manufacture RHD cars for one country.
We are BMWs biggest consumer….so it figures …. 😜
 
I would agree I see no justification for the RHD models to come from Berlin when most of the RHD countries are in Asia. There’s probably no need for them to cut costs other than profiteering anyway and we’re buying enough to make full vessel charters economical rather than delivery on a per unit basis.

Only time I can see financial justification for tooling up a line for RHD in Europe is if sales drop to a level when they can’t fill dedicated vessels.
 
The only cost cut from Berlin is the 10% import tax, which I suspect is a net negative to Tesla when you factor in the cheaper cost of production in China.

The shipping argument isn't clear cut, I do not know how much the 28 day charter is from China to the UK is but it is divided by let's say 5,000. The RoRo port is 1-1:30 hours from Giga Shanghai, this matters because trucking the cars is a big bottleneck and per mile the most expensive bit of shipping the vehicle. These are hypothetical numbers but let's say for the trucking to the RoRo port, it costs Tesla $50 a vehicle as it's a short enough trip. Now, the 5000 cars get on the boat, let's say it costs $500 per vehicle to ship them to Southampton. The landed cost in the example is $550 per vehicle/$2,750,000 for 5000 vehicles.

For a Berlin vehicle, you've still got to truck the vehicles to Bremerhaven (5-6 hours from GF4) for a RoRo to Southampton (I'm guessing). Now it's Germany, we already know costs will be x higher than China and now we've got a 5-6 hour truck that only carries 8 cars. So Let's just say it costs Tesla $300 per vehicle for the trucking part, then the RoRo part costs let's say $100 (I think that's low). The landed cost in the example is $400 per vehicle/$2,000,000 for 5000 vehicles.

I don't expect those numbers to be accurate, they are rough and based on my experience with importing. Tesla has a delivery charge of £800ish so I suspect I'm not far off considering you then have to include the costs after the vehicles have landed. Trucking the vehicles would only work on mainland Europe, as soon as there's water involved, it's best to just get it in the water as close as possible to the production site and delivered as close as possible to the final destination. There is the possibility that rail is used but that seems unlikely. There's a reason all the boats from China bypass Italy and France first, it's cheaper than transporting them on land.
 
Now it's Germany, we already know costs will be x higher than China and now we've got a 5-6 hour truck that only carries 8 cars.
Nice calculations but don't forget there's a train track just a couple of hundred metres north of the site. Would be more economical to transport hundreds of cars at a time with a single locomotive than to pay for small volume transporters.

Trains would be far cheaper for distribution to mainland Europe. I agree though that RHD cars for the UK, Ireland, Cyprus and Malta will most likely still be made in China.
 
Nice calculations but don't forget there's a train track just a couple of hundred metres north of the site. Would be more economical to transport hundreds of cars at a time with a single locomotive than to pay for small volume transporters.

Trains would be far cheaper for distribution to mainland Europe. I agree though that RHD cars for the UK, Ireland, Cyprus and Malta will most likely still be made in China.

I'm not too familiar with the ins and outs of freight trains but if that is the case it could well be compelling vs. the current arrangement especially if they can avoid the water and use the tunnel.
 
To my mind this talk of tariffs and transport costs is a bit of a distraction. In my opinion Tesla pricing is set to whatever the market will pay and also to take maximum advantage of any subsidies with a view to increasing the profit margin as much as possible. It's hard to compare prices between countries 100% accurately due to differing subsidies, VAT rates and such but I've found a good way to look at it is the increase in price between the M3 Long Range and M3 Performance as in most of Europe any subsidies and taxes are identical on both models. What is clear is the UK pays by far the highest premium for the performance over the long range - more than double that paid in some countries such as Germany! The UK price increase for the performance did happen around the time of Brexit and I remember when I bought my 1st M3 performance in late 2019 the UK price was cheaper than most of Europe so perhaps such sudden increases are related to Brexit but it would be rather odd for it to just be on the Performance model. It certainly isn't down to China or RHD as Ireland has a difference of £6034 and their cars come from the same factory and are RHD. Either way it's rather annoying we pay £11500 for the Performance Pack whereas Austrians and Germans pay £4310 for exactly the same thing.

See below for a table with local currency converted to GBP at the current exchange rate:

1622511044485.png
 
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The only cost cut from Berlin is the 10% import tax, which I suspect is a net negative to Tesla when you factor in the cheaper cost of production in China.

The shipping argument isn't clear cut, I do not know how much the 28 day charter is from China to the UK is but it is divided by let's say 5,000. The RoRo port is 1-1:30 hours from Giga Shanghai, this matters because trucking the cars is a big bottleneck and per mile the most expensive bit of shipping the vehicle. These are hypothetical numbers but let's say for the trucking to the RoRo port, it costs Tesla $50 a vehicle as it's a short enough trip. Now, the 5000 cars get on the boat, let's say it costs $500 per vehicle to ship them to Southampton. The landed cost in the example is $550 per vehicle/$2,750,000 for 5000 vehicles.

For a Berlin vehicle, you've still got to truck the vehicles to Bremerhaven (5-6 hours from GF4) for a RoRo to Southampton (I'm guessing). Now it's Germany, we already know costs will be x higher than China and now we've got a 5-6 hour truck that only carries 8 cars. So Let's just say it costs Tesla $300 per vehicle for the trucking part, then the RoRo part costs let's say $100 (I think that's low). The landed cost in the example is $400 per vehicle/$2,000,000 for 5000 vehicles.

I don't expect those numbers to be accurate, they are rough and based on my experience with importing. Tesla has a delivery charge of £800ish so I suspect I'm not far off considering you then have to include the costs after the vehicles have landed. Trucking the vehicles would only work on mainland Europe, as soon as there's water involved, it's best to just get it in the water as close as possible to the production site and delivered as close as possible to the final destination. There is the possibility that rail is used but that seems unlikely. There's a reason all the boats from China bypass Italy and France first, it's cheaper than transporting them on land.
Good write up and makes a lot of valid assumptions!
 
ISTR you could buy a RHD specified vehicle made on mainland Europe even when you shouldn't have been able to but I suppose Brexit will have stopped that.

IF, and it's a big IF, when Tesla Berlin comes online will you have another option box (like Porsche) to choose factory collection 😉