Normally car manufacturers can get away with doubling prices in China. But Tesla isn't a normal car manufacturer, and it's proving it once again with its announcement about the Model S in China. The company will sell the car for 734,000 Chinese Yuan, which is equivalent to $121,370. That's more than the base price of $81,070 in America, but it has to factor in the costs associated with exporting.
Tesla says it's making the move to advance the cause of electric cars in China. Considering the severity of pollution in the country—it emitted more CO2 than any other nation in 2012—China could benefit most from the automotive technology.
"We know that our competitors will try to convince Chinese consumers that our relatively lower price tag means the Model S is a lesser car," Tesla says in a blog, "when the real reason their car costs more is that they make double the profit per car in China compared to the United States or Europe."
The unavoidable price raise comes from shipping and handling ($3,600), custom duties and taxes ($19,000), and value added tax ($17,700).