Tesla Motors Inc (NASDAQ:TSLA) has already built a strong fan base in the U.S. Though its flagship Model S sedan has yet to hit the Chinese roads, Tesla Motors has seen a rapid growth in its Chinese fan base. One of the fans has gone ahead to create a faux ad for the electric vehicle maker, highlighting multiple key features of the Model S.
Tesla unlikely to receive government subsidies in China
Unlike in the U.S., Tesla Motors Inc (NASDAQ:TSLA) green cars won’t receive any government subsidies in China. That’s because the Asian nation subsidizes vehicles produced within the country, not the imported ones. The Elon Musk-led company may eventually plan to build a factory in China, but that would require it to partner with a local vendor. Despite the lack of government subsidies, the San Francisco-based company anticipates its China car sales to match its U.S. numbers by 2015.
Voss Capital is betting on a housing market boom
The Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More
According to Reuters, Tesla Motors Inc (NASDAQ:TSLA) attracted Chinese consumers with its fair pricing strategy. Luxury automakers sell their vehicles in China at more than double the price in the U.S. market. And Elon Musk knew that he could charge a lot for his luxury Model S sedan. But Musk decided to price Model S in China at the same level as in the U.S. The electric vehicle will sell in China for 734,000 yuan or ($121,400). That’s still about 50% higher than the car’s U.S. price, but it is mainly due to unavoidable expenses like transportation costs, import duties and taxes.
Chinese consumers welcome Tesla’s fair price strategy
Chinese consumers welcomed the move. The blog titled “A Fair Price” on Tesla Motors Inc (NASDAQ:TSLA)’s official website fetched overwhelming response from Chinese citizens. A survey on popular Chinese website QQ.com received more than 80,000 votes. The survey found that more than 90% Chinese consumers supported Tesla’s fair pricing move. The company plans to open 12 new stores in China by the end of his year. Tesla has already opened a high-end store in Beijing.
Tesla Motors Inc (NASDAQ:TSLA) shares surged 4.78% to $228.05 in pre-market trading Tuesday.