Tesla pricing rocks Israeli auto market

Tesla announced on Monday the official prices at which its cars will be sold in Israel. Tesla said the first cars will be delivered to Israeli clients at the end of the first quarter of the year.

The basic Tesla Model 3 will cost NIS 179,213 (approximately $54,000) including taxes. The Long Range version of the Model 3, which can travel 580 kilometers between charges compared to 448km for the basic version, starts at NIS 219,510, and the Performance version, with two motors and a 570 kilometer range, priced at NIS 250,860 before accessories.

The Model S saloon with a 663-kilometer range will cost NIS 420,124, with the newly unveiled Model S Plaid to start at NIS 644,273. The Plaid Plus has been priced at NIS 738,613.

What is especially intriguing in Tesla's entrance into the market is its strategy that leaves the veteran auto importers in a serious bind. Tesla has done something that no other importer dared to do, announcing the cost of its vehicles without taxes. Tesla buyers will benefit from a low (10%) purchase tax compared to hybrid vehicles (45%) and regular vehicles (83%). Tesla's transparency also puts the veteran importers in an awkward position as they refuse to reveal their cut in the price of the cars. With Tesla there is essentially no middleman importer and the manufacturer is essentially selling the vehicle directly to the client. For example, the Tesla Model 3 Long Range is currently sold in the U.S. for around NIS 150,000, while its price in Israel before taxes will be around NIS 170,000.