Tesla Model S

Tesla Model S

After a strong third quarter in China, Tesla intends to achieve an even stronger fourth quarter - something needed to hit the significant mark of at least 50,000 deliveries in a single calendar year.

Q4 needs to be not only the best quarter ever, but much better than any other before with at least 17,000 sales. U.S. and Europe will need to get support from Model S sales in Asia.

And here comes new incentives... Tesla Motors announced on its Chinese blog in November a year-end discount of up to 80,000 Chinese yuan (today over $12,500) if a Model S buyer switches from non-electric or other electric cars.

As we understand the idea, Tesla applies the discount for those who will use a special replacement program (launched in early 2014) enabling Tesla to sell on behalf of the owner on the old ICE car in a convenient one-stop service on various auction platforms.

The facilitation of quick sale (without fees from Tesla), combined with discount. probably will be an interesting promotion that lowers the price of the Model S by at least several percent.

Xinhua Finance notes that only Guangzhou and Shenzhen will benefit:

"The US electric car maker's plan may boost its sales as in Guangzhou and Shenzhen, auto purchase is still under restriction. Currently, Tesla Motors directly runs 9 experience stores and service centers in 6 Chinese cities including Beijing, Shanghai, Hangzhou, Shenzhen, Chengdu and Xi'an."

Now we just need to wait see if there is any improvement on S sales this quarter versus the 1,345 sold in China in Q3.

Source: Xinhua Finance