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

[xdguo]

Offer only 85 kwh in China is a smart strategy, if you look at the number of reservations here in China ( assuming over 600) , this first group of reservation holders will definitely choose 85 kwh, price is not a problem ! the fact is Model S pricing in China is very competitive and attractive compare with same category imported cars.

FYI, I just confirmed my order yesterday as soon as they announced the price, and I did choose P85!

 

[772]

Nice! You may have heard already, but Elon said today that they will start the shipping process to China in about a week. Hope you get your car soon!

 

[Chickenlittle]

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.

You are correct in bloomberg interview today he did say they would offer 60 model but just like us roll out the 85 released first

 

[Benz]

Offer only 85 kwh in China is a smart strategy, if you look at the number of reservations here in China ( assuming over 600) , this first group of reservation holders will definitely choose 85 kwh, price is not a problem ! the fact is Model S pricing in China is very competitive and attractive compare with same category imported cars.

FYI, I just confirmed my order yesterday as soon as they announced the price, and I did choose P85!

Congratulations

 

[Ludus]

With pricing at $122K for the 85, a top of the line model S will be price competitive with 5 Series BMWs and cheaper Benz's not just S Class. More than 30K S Class Mercedes sold in China last year at an equivalent of over $200k dollars. I think Tesla expects to be very much constrained by production capacity rather than sales and will have no need for lower priced models in China for awhile.

 

[chickensevil]

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.

I still don't understand this and have heard it elsewhere, any chance someone can clarify what this means?

 

[StapleGun]

I still don't understand this and have heard it elsewhere, any chance someone can clarify what this means?

Most large cities in China (or perhaps it's at the national level?) have strict limits on how many cars can be licensed each year. For example Beijing only plans to issue 150,000 license plates this year. People enter a lottery in hopes of getting the chance at a license. There are sometimes limits on EV's too, but in Beijing for instance they have a separate lottery with proportionally more licenses. If imports can only contribute 1/3 of the total EV licenses theoretically Tesla could be constrained by these regulations and therefore it would be optimal to only sell cars that generate the highest profit per car.

 

[TylerCA]

It's a smart move. Streamline production and keeping thing simple can help them scale properly.

 

[Kipernicus]

Inside EVs reports that 60kWh Model S now being offered at $104k

I think they should have kept it at just the 85 for the license plate and supercharger spacing reasons mentioned up thread. Certainly hope there's not a demand problem.
Could the 60 have a higher profit margin than the 85 or P85?

 

[Rifleman]

Could the 60 have a higher profit margin than the 85 or P85?

If the 60 owner buys the upgraded tires and supercharger access, I would not be surprised if it does.

 

[xdguo]

FYI, Tesla China started to offer 60KWh in China a week ago!