Tesla has been expanding very fast and moving to different countries. A while back, it announced that they would come to India in 2021. And now Tesla gets regulatory permission to start sales in Israel. As the company shifts gears in the production process, the delivery numbers are also bound to increase. They did almost reach their 500,000 deliveries target in 2020, and I suppose it’s all up-hill from here on. This is because there are still a lot of countries where Tesla hasn’t stepped in.
Israel Regulatory permission
The Israeli government has allowed Tesla to import vehicles and start selling in the country. Additionally, the reports also mention that there is no volume limit, and the company can import as many vehicles as required. This is great for the country s well as for the company. Talking about the former, the use of EVs in the country means they will be able to control pollution and slowly transition towards a greener environment. While for the latter, the more countries then can sell their vehicles in the better.
One big problem!
Though Israel is a rich country and Tesla will surely find many customers there, the vehicles are more than 50% expensive compared to the US. Talking about the price, the Tesla Model 3 is priced at $39,990 in the US for the base model, and the same is priced at $77,908 in Israel. Simultaneously, the top model goes up to almost $110,000 compared to $56,990 in the US.
This is expensive, and yes, it might be one of the reasons that Tesla might not see as many sales as it does in the US. As Tesla gets regulatory permission, their next step should be to bring the prices down in the coming months. This will also be the problem in India, where the entry-level Model 3 will be priced like in Israel.
But if the company is able to bring the pieces down by starting manufacturing in these countries, then well the sales will increase phenomenally. We did see the same happen in China, where the company saw crowd as if it were black Friday. This was because after they began manufacturing there, the prices became similar to US prices.