They clearly have thought about this, and they must have found a valid reason to choose to do it this way.
Any thoughts?
Any thoughts?
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Why is the 60 kWh Tesla Model S not being offered in China? A strategic decision?
- Thread starter Benz
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- Tesla Inc.
Most likely just time to market logistics and a 60 will be made available later, but could also be the need for longer distance traveling in China/Asia as well as lack of infrastructure.
Margins are higher on the 85, and there's no shortage of demand. They probably could have offered only P85 and sold out instantly.
Rifleman
Now owns 2 Model S's!!!
I think this is no different than when the 40 was never offered in Europe. Tesla knew they were going to cancel the 40 long before they told the general public. Since they did not want any more 40 orders than absolutely necessary, they never offered the 40 in Europe. At some point, Tesla is going to cancel the 60 (it might not be until the rumored 110 kWh battery is out, or until Gen III is on the roads, but at some point, its going away), so why bring it to a completely new market, and increase the number of orders for a battery that no longer fits into their long term plans?
deonb
Active Member
By not having 60kWh batteries in the market, Tesla can space their SuperChargers further apart from each other.
China is a very large country that will have relatively few Model S's in only a few concentrated areas - so it makes sense to want to do this.
China is a very large country that will have relatively few Model S's in only a few concentrated areas - so it makes sense to want to do this.
RobStark
Well-Known Member
85 kWh is $121k. I don't think Tesla believes there is much of a market for a $111k 60 kWh Model S.
Incorrect calculation. Due to import taxes being percentage-based, a 60 kWh Model S would probably cost in the area of $107k.
But the argument is at it's core still valid - the number of Chinese who can afford $107k but not $121k is probably negligible.
Rifleman
Now owns 2 Model S's!!!
This is very true. There are allot of people in the US who can afford a $65k (after credits) car, but not a $75k. There are not many who can afford a 100k car, but not a 110k car. If the 40 kWh's price point was still available, there would be even more people (like myself) who can afford a 50k car, but a 65k car a just out of reach.
Chickenlittle
Banned
RobStark
Well-Known Member
I wonder in the future if Tesla can bypass the ~23.4% tariff (not VAT, need to be exact here lol) by building the 60 kWh battery pack ( or whatever the smaller pack is at the time) in China using BYD cells?
Then it could offer the 60 kWh for something closer to $90k and 85 kWh for $121k, sometime after supply and demand for the 85 kWh is roughly in balance.
Then it could offer the 60 kWh for something closer to $90k and 85 kWh for $121k, sometime after supply and demand for the 85 kWh is roughly in balance.
Plenty of 16GB iPhones being sold in China. In fact, for the buy-two-from-Apple-then-flip-it-to-China crowd,the 16GB model is the most popular and most profitable. I am not sure why no 60kWh in China, but suspect it is related to keeping profit margin high, given fair pricing constraint.
SwedishAdvocate
Active Member
Don’t really know how Chinese culture works, but on my iPhôône fünf there is no way of telling it’s a 16GB by just looking on the phone or by observing my interactions with it. A 60 kWh MS on the other hand you’ll be able to tell by the battery indicator on the instrument gage. And by the ‘action radius of the owner’…
Elon syas 60 kWh will be available in China, explains the 60 usually is available a year after the 85 kWh in new markets.
http://www.bloomberg.com/video/musk-says-china-may-become-top-market-for-tesla-tXSEMaWzQ9SWBNF0YyRqiQ.html?cmpid=yhoo
http://www.bloomberg.com/video/musk-says-china-may-become-top-market-for-tesla-tXSEMaWzQ9SWBNF0YyRqiQ.html?cmpid=yhoo
But there is a difference if compared to the US and Europe. And that is that the Chinese customers cannot choose to order a Tesla Model S with a 60 kWh battery pack from the start (and apparently later they will be able to choose it), and in the US and in Europe this choise was available from the beginning. Therefore, I think that Tesla Motors don't want the Chinese customers to be able to choose the 60 kWh battery pack (during 2014?), they just first want to ship the 85 kWh battery pack only to China. For what reason? Higher gross margins? Some other reason?
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