It seems that Tesla Motors is trying to find a loophole that will allow its Model S to qualify for China's substantial EV subsidies.

Priced from $121,000 in China, the Model S could become some $17,000 cheaper if it were to qualify for the full EV incentive in China.

Problem is that only domestically-built EVs qualify for the incentive, which means that Tesla would have to begin building the Model S in China in order to take advantage of the subsidy.  Tesla understands that it doesn't qualify for the incentive, but the automaker is hoping that some concessions can be made so that the Model S qualifies for some sort of discount.

Diarmuid O’Connell, Tesla’s vice president of business development, stated this in a phone interview:

"We understand we don’t qualify for direct subsidies."

"We’re hoping the government will consider the role Tesla can have in catalyzing electric vehicle adoption in China and extend those incentives to Model S as well."

Sales of the Model S in China will get underway next month.

It's our belief that the Model S will not qualify for any form of incentive in China.  The nation has stood its ground on this and has never allowed a foreign-built EV to benefit from the country's subsidies.

Tesla Model S Priced at $121,000 USD in China

Tesla Model S Priced at $121,000 USD in China

Source: Detroit News