China To Get Tesla Model X Before Europe

1 year ago by Eric Loveday 26

(特斯拉顶配限量版”Signature Red” Tesla Model X)

(特斯拉顶配限量版”Signature Red” Tesla Model X)

Tesla Model X

Tesla Model X

Approximately one week ago, we reported on the launch of the Tesla Model X in China (full details here).

Now, as Bloomberg’s Dana Hull points out, China will in fact receive the Model X well before it arrives in Europe.

As Hull reports:

“Tesla Motors Inc. has started taking orders for its Model X in China with deliveries to begin in the second quarter, giving customers in the world’s largest auto market access to the new sport utility vehicle before it debuts in Europe.”

This is a departure from the norm for Tesla, as its Model S launched in Europe way before it became available in China.

Hull explains:

“Tesla, whose China rollout for the Model S sedan got off to a rocky start, wants to take advantage of the nation’s hot market for SUVs, particularly luxury models. About 21 million light vehicles were sold last year in China, where German brands such as Audi, BMW and Mercedes-Benz dominate the premium segment.”

Hull reached out to Michael Dunne, a strategic adviser on the Asian auto market, for comment on Tesla’s Model x launch in China: Dunne stated:

“This is Tesla’s opportunity to establish the brand. Tesla’s success in China will hinge on its ability to establish that it is a distinctive, alluring and exceptional brand to own. With the Model S they struggled.”

To date, Tesla has struggled to meet its sales expectations in China, but hopefully the launch of the X there will drive up sales to levels never before seen by a “foreign” maker of electric cars.

Details on Tesla Model X pricing on China can be found here.

Source: Bloomberg

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26 responses to "China To Get Tesla Model X Before Europe"

  1. SparkEV says:

    Why not wait until Tesla opens factory in China so they can avoid all the extra Chinese taxes?

    1. Robb Stark says:

      Because Tesla can start making money now off Model X and Model S sales instead of later.

      Tesla does not pay those tariffs, it passes them on to Chinese consumers.

      Tesla makes the same margins in China as it does in California.

      1. SparkEV says:

        Companies do pay the tax indirectly as reduced sales. With X, BYD’s Tang doesn’t seem as good while X’s pricing is out of the question for Tang buyers.

        1. Tech01x says:

          Seriously, you think a Model X buyer is cross shopping a BYD Tang?

          Instead, the Model X is grabbing someone buying a Range Rover, X5/X6, Porsche Cayenne or something like that.

          1. SparkEV says:

            Tang ultimate is close to $100K, 0-60 under 5 seconds. I’d say that’s closer to X than Rover, etc. But as you wrote later, higher X price might be a good thing.

          2. Mikael says:

            Why not? Both are luxury EV SUVs.

    2. Pushmi-Pullyu says:

      SparkEV asked:

      “Why not wait until Tesla opens factory in China so they can avoid all the extra Chinese taxes?”

      Why would Tesla want to wait the 2+ years it would take to equip a factory and get it fine-tuned for volume production?

      They can start selling the MX now, not later.

      1. SparkEV says:

        If Tesla has surplus inventory to sell, selling it now in China is fine. But they are crunched as it is. Delay may be a good thing, at least until supply can catch up to the demand.

    3. Tech01x says:

      A higher price in China is actually a good thing. The struggles for the Model S has very little to do with price.

      First, the expectations were overblown. The Model S sells quite well in China, just not relative to the expectations built up by speculative buyers.

      The Model S isn’t oriented towards owners that do not drive. The X fits much better with the Chinese market – they do want the falcon wing doors as a Chinese multi-millionare/billionare wants to show up in the right kind of look.

      1. SparkEV says:

        You do have a point about higher priced item. That might mean that when (if?) X is ever produced in China, it would mean HUGE profits for Tesla by keeping the price the same as pre-tariff level without paying tariff. Then they could invest more in China when the market is even bigger than what it is today.

      2. sven says:

        Speaking of high prices, companies are selling jars and cans of fresh air from abroad for big bucks. $$$ A jar of air from the English countryside is selling for $115 a pop, and business is booming! It’s the greatest business idea since pet rocks.

        http://edition.cnn.com/2016/02/08/world/fresh-air-britain-china-bottles/index.html

        http://www.cnn.com/2015/12/15/asia/china-canadian-company-selling-clean-air/index.html

    4. miggy says:

      Tesla is looking after the friendly and loyal country’s first!!!

  2. Three Electrics says:

    In Paris, Elon slated that European customers would get cars by summer. Someone is wrong.

    1. Rebel44 says:

      Summer could easily be late Q2, or early Q3.

    2. Pushmi-Pullyu says:

      …but that was in Elon time. To convert to real-world time, multiply the number of quarters or years by 3-4. 😉

      1. Anon says:

        Not when the design and engineering work are done, and the vehicle is ramping production as any little details are ironed out…

  3. tftf says:

    Unless Chinese customers dare to complain about delays or other issues, then Elon will Alsop their orders.

    No Tesla For You!

    1. Tech01x says:

      That would only serve to up their sales. The Chinese market behaves very differently, especially for American luxury goods.

      1. tftf says:

        Really?

        A Chinese Man Smashed His Brand New Model S To Protest ‘Tesla’s Arrogance’

        http://www.businessinsider.com/chinese-tesla-model-s-customer-smashes-windshield-with-wrench-2014-6?IR=T

        1. Tech01x says:

          What does that prove? That article has various people beating up luxury vehicles. Certainly not a Tesla only circumstance. Matter of fact, it shows that Tesla belongs amongst the notable marquee brands.

          1. Anon says:

            You can find horrible customers with wildly unrealistic expectations, in any country…

  4. Speculawyer says:

    Happy Lunar new year to our Chinese friends!

    1. ModernMarvelFan says:

      “Happy Lunar new year to our Chinese friends!”

      There is no such thing as “lunar new year”. It is a terrible way of trying to be political correct.

      The “New Year” is based on the Chinese calendar which is a lunisolar calendar. The “new year” is chosen by the Chinese when the new Moon for this particular month.

      Many other cultures have the similar lunisolar calendar but have different new year designated. Persian calendar is also based on lunar cycles but has a new year at much later date in the year.

      The Chinese New Year is based on Chinese agriculture calendar that happens to be lunar and solar based and happens on the same day of a new Moon…

      Other Asian cultures have adopted that Chinese calendar in the past thus celebrating the same “New Year” as the Chinese do on the same date.

      But calling it a “Lunar New Year” is just wrong or trying to be political correct.

      If you want to try to be nice to the Chinese, then just call it “Chinese New Year”.

      If you don’t want to offend other cultures such as Japanese, Vietnamese or Korean, then just tell them “Happy _____ New year” which are technically all true.

  5. Foo says:

    Can’t wait to see some Chinese guy smashing up the windshield his Model X because it arrived late.

  6. Dave S. says:

    Seems like a good move. A few hundred examples will supply China for a couple of months. So they are available without the need to build many examples.