Tag: Model S

Key Takeaways

1. Elon Musk warns that Tesla will face repercussions from new US tariffs despite ties with the president.
2. Tesla has halted orders for the Model S and Model X in China, affecting customers who must import these vehicles.
3. The shipping process for Model S and Model X can take up to eight months for Chinese buyers.
4. American goods face an 84 percent import duty due to China’s retaliatory tariffs, raising prices for Tesla’s high-end models.
5. Model S and Model X accounted for less than 4 percent of Tesla’s sales last quarter, suggesting limited short-term impact from halted orders.

Tesla CEO Elon Musk has expressed concerns that his company, despite its close ties to the president, will still face the repercussions of the new tariffs set by the current US government. This warning seems to be coming true, as Tesla’s operations in China have halted orders for the Model S and Model X.

Impact on Chinese Customers

Customers in China wishing to buy Tesla’s two most expensive electric vehicles must import them from the United States, making them susceptible to the ongoing trade tensions between the two countries. The shipping process for the Model S and Model X can take as long as eight months for buyers in China. Unfortunately, even those willing to endure the long wait can no longer place orders, as Tesla has replaced the “Order Now” buttons on these models’ websites with “View Now.” In contrast, the Model 3 and Model Y are still available for purchase, as they are produced in Shanghai.

Tariffs and Sales

As a result of China’s retaliatory tariffs, American goods now face a staggering 84 percent import duty. Adding these extra costs to the already high prices of the Model S and Model X could render them unaffordable for a lot of Chinese consumers. Nevertheless, it’s worth noting that these two models accounted for less than 4 percent of Tesla’s sales in the previous quarter, suggesting that the automaker may not experience significant short-term effects from this halt in orders from China.

Tesla’s operations in China are currently navigating a complex landscape, balancing tariffs and supply issues while trying to maintain a foothold in one of the world’s largest electric vehicle markets.

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When Tesla launched free lifetime Supercharging for the Model S, it quickly became a hit, even though its charging network was just starting out.

Years later, those Model S vehicles that include free lifetime Supercharging still fetch higher prices in the resale market. This is true despite the fact that early models, particularly those made before 2016, had a known design flaw in the battery housing that caused failures.

Battery Replacement Boosts Value

If the battery was swapped out under warranty, or by the previous owner, and the valve issue was fixed, the Model S with free charging became even more desirable. The same applies to the Model X, which was sold with transferable free Supercharging until March 2017.

Fresh Incentives for Sales

Tesla is currently looking to attract buyers in America and Europe for its pricier high-performance models, the Model S and Model X, by offering the same free Supercharging incentive to boost sales. Given that the Model S and Model X make up a small portion of Tesla’s total sales, they’re not losing a lot with this offer. Additionally, the price of the Model X has been raised, putting it above the federal tax credit limit. Elon Musk likely understands that the Trump administration might eliminate the EV tax credit program, similar to what happened with the national EV charging network, so Tesla could be adjusting its incentives accordingly.

Changes to the Offer

However, the free lifetime Supercharging deal for the Model S and Model X isn’t exactly the same as the initial offer. The original deal was transferable, while the current offer has specific terms:

Customers who buy or lease a new Model S can enjoy free Supercharging as long as they own the vehicle. This offer is linked to the Tesla account and can’t be transferred to a different vehicle, person, or order, even if ownership changes. Used cars, business orders, and vehicles used for commercial purposes (like rideshares or deliveries) are not eligible. Owners are still responsible for Supercharger fees, including idle and congestion charges, if they apply. This promotion can be combined with other offers, but Tesla has the right to revoke free Supercharging if there are excessive charges or unpaid fees. The promotion may change or end at any time.

In essence, while the free lifetime Supercharging for the Model S or Model X lasts as long as the buyer owns the vehicle—potentially up to 20 years—it is linked to the buyer’s Tesla account and cannot be passed on to the next owner. This keeps the resale value of the car elevated for a longer time.

Recent Trends in Offers

Tesla has applied this new approach to all its free lifetime Supercharging offers recently, including the one for the Cybertruck, as well as limited-time promotions used to clear out inventory in the last two quarters.

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