Tesla Motors Inc (NASDAQ:TSLA) said today that the starting prices for its Model S sedan will range from HK$579,000 for the 60 kilowatt-hour model up to HK$657,000, according to the South China Morning Post. The ultra-high-high end Performance 85 package will begin at HK$761,800.
Tesla’s Hong Kong pricing is cheaper
Late last month, Tesla Motors Inc (NASDAQ:TSLA) revealed the prices for its Model S in mainland China, and Hong Kong’s prices are significantly cheaper. The 85 kilowatt-hour model in mainland China starts out at HK$941,000. There are also shipping costs and imported car taxes adding up to about HK$284,685.
ValueWalk's Raul Panganiban interviews Dr. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, and discuss her approach to investing and the trends she is seeing in regards to quant investing and hedge funds. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with AlphaSimplex's Read More
The automaker said the reason prices are so much higher in mainland China is because of the high taxes and customs charges. Without those charges, the Model S is priced the same as it is in the U.S. Nonetheless, Tesla Motors Inc (NASDAQ:TSLA) said it could charge twice as much in China as it does in the U.S., which would go along with “industry practices.” However, it chose not to do so.
In mainland China, Tesla Motors Inc (NASDAQ:TSLA) is expected to receive a boost from the extension of subsidies for fuel efficient vehicles. That will help bring down the price a bit for Chinese buyers who are interested in the automaker’s EVs.
Demand for Tesla has been strong
Luxury vehicles like Tesla Motors Inc (NASDAQ:TSLA)’s Model S are more common in Hong Kong than they are in mainland China. The automaker has also been racking up the preorders, even though Hong Kong buyers did not know how much the final price would be. Last July alone, preorders in Hong Kong surpassed 300, which is more than the number of electric vehicles which are currently on Hong Kong streets.
In the U.S., Tesla Motors Inc (NASDAQ:TSLA) has been accepting orders for its Model X crossover vehicle, which is expected to launch net year. The Tesla Motors Club reported this week that preorders for the vehicle surpassed 9,555 globally. The club reported about 1,400 preorders for the higher priced Signature Model X.