PHOTO CAPTION: Tesla Model S on display in recently opened show room in Beijing shopping mall. Photo: LA Times.

Telsa Model S Won't Qualify for China's Electric Car Incentives

Government subsides worth $19,000USD can cut the $61,100 price of BYD's e6 electric car, but can't be applied to Tesla's Model S, which carries a base price of $121,000USD.

Published: 31-Jan-2014

Chinese capital city Beijing has unveiled a new preferential policy for electric cars that includes a purchase subsidy ranging from CNY63,000 to CNY108,000 ($10,400 – $17,800), Xinhua reports.

The release of the policy, first spotted by Tech in Asia, is notable because the subsidies will only go to domestic firms, which means Tesla is left out of the preferential treatment — which could affect its uptake among Chinese consumers.

Earlier this month, Tesla launched the Model S in China with a minimal markup — you’ll have to fork out CNY734,000 (about $121,000) for the Model S with the premium 85 kWh battery pack. However, this price puts it squarely in the high-end category. For comparison, the domestic Shenzhen-based BYD, which is backed by Warren Buffett, pegs its flagship e6 model at CNY370,000 ($61,100) — and under the previous policy, the government subsidized CNY120,000 ($19,000) for each car sold.


Tesla Model S production line in Fremont, California.

400 unit per week production is more than Mercedes-Benz or BMW sells of their flagship S Class and 7 Series cars respectively in the United States.

Tesla Model S showed rapid battery discharge rates driving along Interstate95 between Washington, D.C. and Norwich, Connecticut.

John Broder finds himself stalled short of a charging station in Connecticut in his first cross-country drive of a Tesla Model S.

Tesla Model S similar to one driven by NY Times reporter John Broder.

Grist's David Roberts argues that instead of obsessing over 'widget' solutions to our energy and transportation problems, we need to rethink the entire system.


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