Tesla has begun commercialization of its electric car — the Model S — in Mexico. Interested customers are required to make an advance payment of 80,000 pesos ($4,701.2) for booking the vehicle through the automaker’s website. Citing unnamed sources, a report from Zacks states that the price can be expected to start at $75,000 plus taxes.
Why Tesla opted for Mexico
Tesla’s decision to start operations in Mexico is based on the interest of the country’s government in sustainable transport. Additionally, Mexico City is among the world’s top luxury markets. Mexico’s automotive market is mature and dynamic, and for the past few years, it has been witnessing continuous growth.
Last year, light vehicle production hit a new historical record of 3 million vehicles in the country. It is expected that by 2018, the Mexican automotive industry will reach a production level of 4 million units because of the expansion that will take place in the future, according to the Mexican Automobile Industry Association (AMIA). By 2020, the production level is expected to be 5 million.
Tesla is undertaking international expansion very aggressively. In Aug 2013, the company started delivering the Model S in Europe and in April 2014 in China. In November 2013, the electric automaker began taking orders for the Model S and Model X in Japan. In June, the company launched the right-hand drive (“RHD”) Model S in the U.K. and in Hong Kong in July. The U.S. firm also expanded its operations in Australia.
Tesla to expand Supercharger network too
Tesla also plans to expand its Superchargers network in Mexico to facilitate longer trips, the report said. The automaker aims to open a formal store in the country by the second quarter of 2016. The U.S. firm plans to commence operations in Mexico in the second half of 2016, according to a declaration it made earlier this year.
The Tesla Model S features advanced technology that allows it to accelerate from 0 to 100 km/h in just three seconds and travel up to 425 kilometers in a single complete charge. Substantial demand exists for both new and used vehicles in Mexico’s automobile market, as per Tesla management’s belief. It is possible that Mexico will import a wide range of used Tesla cars once service centers and Superchargers are established in the country.
In pre-market trading today, Tesla shares were down 1% at $227.07. Year to date, the stock is up by over 2%, while in the last one month, it is up by almost 5%.