TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Why is the 60 kWh Tesla Model S not being offered in China? A strategic decision?

Discussion in 'Tesla Motors' started by Benz, Jan 23, 2014.

  1. Benz

    Benz Active Member

    Joined:
    Nov 15, 2012
    Messages:
    1,907
    Location:
    Netherlands
    They clearly have thought about this, and they must have found a valid reason to choose to do it this way.

    Any thoughts?
     
  2. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,884
    Location:
    Seattle
    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.
     
  3. Robert.Boston

    Robert.Boston Model S VIN P01536

    Joined:
    Oct 7, 2011
    Messages:
    7,842
    Location:
    Portland, Maine, USA
    Margins are higher on the 85, and there's no shortage of demand. They probably could have offered only P85 and sold out instantly.
     
  4. Rifleman

    Rifleman Now owns 2 Model S's!!!

    Joined:
    Nov 29, 2011
    Messages:
    936
    Location:
    Harrison Ohio
    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?
     
  5. deonb

    deonb Active Member

    Joined:
    Mar 4, 2013
    Messages:
    3,020
    Location:
    Redmond, WA
    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.
     
  6. RobStark

    RobStark Active Member

    Joined:
    Jul 2, 2013
    Messages:
    2,918
    Location:
    Los Angeles
    85 kWh is $121k. I don't think Tesla believes there is much of a market for a $111k 60 kWh Model S.
     
  7. Yggdrasill

    Yggdrasill Active Member

    Joined:
    Feb 29, 2012
    Messages:
    2,539
    Location:
    Kongsberg, Norway
    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.
     
  8. Rifleman

    Rifleman Now owns 2 Model S's!!!

    Joined:
    Nov 29, 2011
    Messages:
    936
    Location:
    Harrison Ohio
    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.
     
  9. 772

    772 Member

    Joined:
    Oct 9, 2013
    Messages:
    712
    Location:
    Iowa
    I agree with RobStark's idea. I also think that having only one battery type will help Tesla simplify their Supercharger network rollout in China. Ultimately, this would lead to less SC's needing to be installed.
     
  10. Curt Renz

    Curt Renz Active Member

    Joined:
    Mar 5, 2013
    Messages:
    1,859
    Location:
    Chicagoland
    The 85 kWh version may be viewed as a status symbol in China. Any Chinese who can afford a Model S might not want to admit to a peer with 85 kWh that he only has 60 kWh.
     
  11. Chickenlittle

    Chickenlittle Active Member

    Joined:
    Sep 10, 2013
    Messages:
    1,665
    Location:
    Virginia
    hit it on the head
     
  12. RobStark

    RobStark Active Member

    Joined:
    Jul 2, 2013
    Messages:
    2,918
    Location:
    Los Angeles
    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.
     
  13. WarpedOne

    WarpedOne Supreme Premier

    Joined:
    Aug 17, 2006
    Messages:
    2,653
    Location:
    Slovenia, Europe
    On the other hand this also means there will be a 300 miles GenIII. I love it!
     
  14. markwj

    markwj Moderator, Asia Pacific

    Joined:
    Apr 10, 2011
    Messages:
    3,664
    Location:
    Hong Kong
    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.
     
  15. SwedishAdvocate

    SwedishAdvocate Active Member

    Joined:
    Jul 26, 2012
    Messages:
    1,648
    Location:
    Sweden, Earth
    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’…
     
  16. Lump

    Lump Active Member

    Joined:
    Mar 31, 2013
    Messages:
    2,103
    Location:
    So. Cal.
  17. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,884
    Location:
    Seattle
  18. Benz

    Benz Active Member

    Joined:
    Nov 15, 2012
    Messages:
    1,907
    Location:
    Netherlands
    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?
     
  19. renim

    renim Member

    Joined:
    Apr 6, 2013
    Messages:
    449
    Location:
    Oz
    happier customers
     
  20. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

    Joined:
    Jul 12, 2012
    Messages:
    4,501
    Location:
    Maine
    To add to that, of course, the EV rules give imports only a third of the licences, so Tesla could lose by selling a 60.
     

Share This Page