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European Pricing Announcement

From George Blankenship:

Happy Holidays!

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 focus our attention on reservation holders in Europe. Many of you may have seen the recent press release regarding our new Tilburg Distribution Center. This is where most Model S cars will enter Europe. With our distribution site defined, it's now time to take the next two steps - announce European pricing for Model S and begin configuring Signature cars!

We will be announcing European pricing for Model S in the next few days and configurations for left hand drive Signature cars will begin in January.

We have taken a very straightforward, transparent approach to European pricing. First, there will be no difference between U.S. and European standard equipment and options packages. We have taken U.S. pricing and added to it the cost to transport the car, pay all applicable import duties, fees and taxes, then added a slight amount to cover miscellaneous business expenses by country. This will then be converted to local currency and local VAT will be applied. All prices include delivery at your closest Tesla Service Center.

A press release and blog will both be published in the next few days covering this pricing announcement. Our European websites will also be updated in the next few days to show pricing and options by country.

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.

Many of you may have heard about our recent Model S price increase. 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.

As a current Model S reservation holder, if you complete your configuration and finalize your order within four weeks after receiving your "Invitation to Configure" email, €1,700 (or the local currency equivalent in other countries) will automatically be deducted from the price of your Model S
(pre-VAT). This €1,700 deduction will also apply to anyone who makes a reservation by end of day on December 31, 2012 and configures their car and finalizes their order within four weeks after receiving their "Invitation to Configure".

We look forward to our first Model S Signature cars arriving in Europe. European left hand drive deliveries are scheduled to begin in 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 dated prior to end of day on December 31, 2012 and finalize your order within 4 weeks after receiving your "Invitation to Configure".

We are very excited to be taking these next very important steps to get ready to begin delivering Model S across the Atlantic Ocean. As always, we appreciate your ongoing support and look forward to getting you behind the wheel of your Model S as soon as possible.

Met vriendelijke groet,

George Blankenship


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