tesla-store-oregonThe surging market for luxury goods in China has seen automakers both big and small fleecing well-heeled customers with outrageously-priced vehicles. Many wondered how much the Tesla Model S would cost on the Chinese market. Tesla announced that Chinese customers will pay the same price as everyone else.

After taxes, tariffs, and other various importation-related fees, Chinese customers can expect to spend about $121,000 for a 85 kWh Tesla Model S. While that is $51,000 more than the $80,000 MSRP of the Model S here in America, $19,000 of that is in local taxes, and another $17,000 is chalked up to the Valued Added Tax. Throw in $3,600 for shipping and exchange rates and you arrive at approximately $121,000.

It’s a bold move for Tesla, which has yet to secure the rights to its name in the world’s largest car market. But with this aggressive pricing strategy, China could become the biggest market for the Model S. Comparable cars like the BMW 650, which retails for about $87,000 in the US, can cost more than $326,000 in China. It’s not that demand isn’t there, as one eager Chinese customer paid around $400,000 to import a Tesla into the country. Tesla is leaving a lot of money on the table, hoping to make up that lost money in volume.

What’s bound to follow from here is the installation of a Chinese Supercharger network, as well as the opening of more stores outside of Hong Kong. If Tesla plays its cards right, it could stand to benefit from a major shift in transportation policy as Beijing and other Chinese cities are suffocated by smog. All it takes is one edict by the government, and suddenly Teslas are the hottest luxury good among China’s nouveau riche.

Source: Tesla Blog