Model S European Pricing

2012 has been a very exciting year for Tesla. We began delivering Model S to U.S. customers in June, Canadian deliveries are beginning this week, and now it’s time to engage our reservation holders in Europe. Many of you may have seen the recent press release regarding our new Tilburg Distribution Center. This facility is where most Tesla cars will enter Europe.

With our distribution site now open and operating, it’s time to take the next two steps – announce European pricing for Model S and begin configuring Signature cars! We are announcing European pricing for Model S today and Signature reservation holders will begin configuring their European left hand drive cars in January.

Tesla has taken a very straightforward, transparent approach to European pricing. Our goal is to make the same level of profit per car no matter where it is ultimately delivered around the world. We do not think it is right to seek higher profits from customers in some countries just because other companies do. The reason our European prices are higher is simply to cover additional transport costs, import duties and minor business expenses that vary by country. Another important difference is that US prices take into account a $7500 federal tax credit and do not include VAT/sales tax, which results in a 20% increase in some countries.

There will be no difference between U.S. and European standard equipment and options packages. Our European websites have been updated to show pricing and options by country. All prices include delivery at your nearest Tesla Service Center.

As we begin production of Model S for Europe, we will only be importing 60 and 85 kWh cars. We will not be importing the 40 kWh car. We may choose to import the 40 kWh car at some point in the future, but it is not planned as an option in Europe for 2013.

It is very important that we implement European pricing in a way that recognizes those who already have a Model S reservation and those who may have been planning to get one in the very near future.

Anyone who currently has a Model S reservation and finalizes their order within four weeks after receiving their “Invitation to Configure” will have €1,700 (or the local currency equivalent in other countries) automatically deducted from the pre-VAT price of their Model S. This €1,700 deduction will also apply to anyone who makes a new reservation by end of day on December 31, 2012 and finalizes their order within four weeks after receiving their “Invitation to Configure” when the time comes to build their car.

We look forward to our first Model S Signature cars arriving in Europe. European left hand drive deliveries are scheduled to begin in late Spring of 2013.

For those in the U.K., production of right hand drive Model S is planned to begin in late 2013, with final pricing to be announced approximately four to five months prior to the start of deliveries. The same €1,700 (local equivalent in GBP) deduction will apply as long as you have a reservation prior to end of day on December 31, 2012 and finalize your order within four weeks after receiving your “Invitation to Configure” when the time comes to build your car.

We are excited to be taking these very important next steps as we get ready to begin delivering Model S outside of North America. As always, we appreciate your ongoing support and look forward to getting our European friends behind the wheel of Model S as soon as possible.

We’ll be on our way across the Atlantic soon!
George Blankenship


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Forward-Looking Statements
Certain statements in this blog, including statements regarding the configuration, production and delivery schedule of Model S, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings. Tesla disclaims any obligation to update this information.

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Comments

nuzululhakim@ho...

I believe that VAT in many Eurpoean countries require the taxes be included in the list price.

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