Upgrade to SI Premium - Free Trial

Tesla (TSLA) May Not Be Able to Meet Initial Model S Demand in China

February 21, 2014 7:19 AM
Tesla Motors (Nasdaq: TSLA) is going to bring its Model S sedan to China this spring. But, investors want to know: will there be enough initial demand to make the effort worthwhile?

Company CFO Deepak Ahuja said demand in China is very good right now and that Tesla might not be able to keep up with all the orders, according to China's Caijing.com. No specific pre-order numbers were given on the company's recent conference call, though the company is modeling Model S deliveries of 35,000 units in 2014.

The price of the Model S will be about $121,300 in China, which is basically the same price as it is in the U.S. with the addition of unavoidable taxes.

Following initial deliveries of Model S units in China, the company will begin to roll out its Supercharger network as well as service centers. Specifics of those plans haven't been made public yet.

Other markets where Tesla will introduce a right-hand drive Model S include the U.K., Japan, Hong Kong, and Australia this spring.

Shares of Tesla are up in early trading Friday.

Categories

Insiders' Blog Management Comments

Next Articles