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Auto Buyers In China Cheers On Tesla Inc (NASDAQ:TSLA) Offering A 10% Discount

Tesla Inc (NASDAQ:TSLA) announced a 10% discount for Tesla vehicle buyers in China. This discount is on the backdrop of MIIT (Ministry of Industry and Information Technology) in China, allowing a purchase tax exemption for the buyers of Tesla vehicles. Sixteen vehicle configurations of Tesla qualify for the tax exemption.

The tax exemption is good news for the customers in China and Tesla. Customers can enjoy a 10% discount on the outdoor price of Tesla vehicle. The customers savings is estimated at $13,960. The purchase tax exemption for electric vehicles of Tesla is amid trade tensions between China and the US. Tesla sees China as a promising market for its models. It is promoting the race events, introducing Tesla stickers for Chat Apps in China and conducting showroom parties together with DJs as part of the major sales push. Elon Musk, CEO of Tesla, has met the transport minister and Wang Qishan, the Vice President of China during his recent visit to the Shanghai plant.

Tesla feels bullish in China

Tesla has localized the production of Tesla Model 3 in China and prevents the need to import the parts. It saves the import duties for the company. The company would soon introduce the first vehicle Tesla Model 3S manufactured in a Gigafactory 3 based in Shanghai, China. Tesla also plans for production of Model Y in China in the year 2020. The total production of Tesla Model 3S and Model Y in China is expected at 250,000. Tesla may enhance the count with the addition of new models.

Revenues climbed to $1.5 billion

The revenues of Tesla have surged to $1.5 billion (up 42%) in H1 2019 in China. It amounts to 13.5% of the overall revenues of Tesla. The company expects to garner more revenues in the second half of 2019 and beyond.

Tesla Gigafactory a pride for China

The construction of Gigafactory is a pride for China. It is the first overseas plant for Tesla. People in that location are joyous of flying drones over and taking snaps standing next to the facility. They eagerly expect the rollout of the Tesla Model 3S manufactured in China before December 2019.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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