Tesla could build a factory in China, a future "top market" for the electric car company

Tesla factory
CC BY 2.0 Flickr

Smog-choking China could use more electric cars...

Tesla keeps forging ahead on its road to world domination transportation electrification. The company definitely isn't running out of opportunities, and while it keeps ramping up production of its Model S electric sedan, it's also looking over the horizon to entry into more markets around the world and an eventual mass-market electric car that will be priced within reach of more people. CEO Elon Musk recently said that sales of electric Model S cars in China should "match U.S. levels as early as next year", with demand China eventually requiring a new, local factory.

Tesla Model S factoryYoutube/Screen capture

High demand from China could be boosted by Tesla's strategic decision to enforce a "fair price" worldwide for its vehicles. While many automakers will sell cars for much higher prices in certain market, Tesla has vowed to price its EVs the same as in the US with only shipping and custom duties and taxes added.

If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US. [...] Instead, the price of a Model S in China is much lower than its competitors simply because we want to treat our Chinese customers just as well as we'd treat customers in any other country. That means the price of a Model S in China is the same as the price of a Model S in the US, adding only unavoidable taxes, customs duties and transportation costs. We're not even factoring in the cost of the free-to-use Supercharger network that Tesla will build across China. (source)

Now that's unconventional, leaving money on the table in favor of fairness. Wow!

Tesla model s factory electric car© Tesla

As a bonus, here's a great interview with Elon Musk. It's from last year, but it's still just as interesting if you haven't seen it:

Via Bloomberg

See also: How it's made: The Tesla Model S electric car (video)

Tags: Electric Cars | Electric Vehicles


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