Model S in China

Model S in China

According to Bloomberg, Tesla Motors CEO has announced that the Tesla Model S will officially go on sale this month (most likely sometime this week) in China.

A Tesla Model S Arrives In China To Do Some Promo Work

A Tesla Model S Arrives In China To Do Some Promo Work

Tesla CEO Elon Musk will be in China to celebrate first Chinese deliveries of the Model S.

Simon Sproule, Tesla’s vice president of marketing and communications, told Bloomberg the following:

“We’re going to be doing our first customer deliveries later this month. Elon is going to be doing that personally.  It’s got huge potential.”

Honestly, we still aren't buying this "huge potential" in China idea that we've heard countless times now from Tesla Motors.

China is an incredibly difficult market to break into as an outsider and, beyond that, the Model S doesn't qualify for any incentives offered for plug-ins in China.  Only domestically built plug-in vehicles qualify for those incentives.

Furthermore, the Tesla Model S will be subjected to Beijing's license plate lottery, which will present a problem (and an extremely long waiting period) for residents of Beijing who wish to buy a Model S.  Domestically built electric vehicles are now exempt from the license plate lottery, a move that recently resulted in a huge upswings in EV sales in Beijing.

Brian Johnson, a New York-based equity analyst at Barclays, mostly agrees with our take on Model S sales in China:

“While we expect strong initial interest from early adopters in China (drawn from the tech and finance sectors, as in the U.S.), we see challenges to broader luxury market adoption."

One things for certain.  All eyes will be on Tesla's entry into China.

Source: Bloomberg