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Tesla announces aggressive Model S pricing for Chinese market

Most cars exported to China end up with a hugely inflated price tag - often hovering around twice as much as what we'd expect to pay in the United States. Part of that can be chalked up to duties and taxes - which can be quite prohibitive in the People's Republic - but a big part of it comes down to profitability. Tesla, however, is committed to doing things differently.
While some sources were expecting the Model S to carry a price tag in China more than double that of the US model, Tesla has announced a far lower MSRP for the Chinese market than that. Instead it will sell the Model S for 734,000 yuan - equivalent to $121,000 at today's exchange rates.
Now we know what you might be thinking: that's significantly more than the $69,900 Tesla buyers pay in the United States. And you're right. But you have to take into account several factors. For one, the US price includes a $7,500 federal tax credit. For another, Tesla is including the 85 kWh battery pack as standard in China - an option that would already tack on an extra ten grand Stateside. There's shipping costs to take into account (about $3,600 worth, Tesla figures). And last but not least, there's the considerable taxes the Chinese government rakes in on imported cars: $36,700 of it, to be precise.

FTC officials question 'bad policy' that stops Tesla's direct sales

It looks like Elon Musk has a new group of allies over at the Federal Trade Commission. Writing on the FTC blog, three high-level FTC officials came out against the "protectionist" network of laws in the US that govern automotive dealers and prevent, in some cases, Tesla Motors from selling its cars directly to customers. They called the rules, "bad policy for a number of reasons." They write: [The legal] protections expanded until in many states they included outright bans on the sale of new cars by anyone other than a dealer-specifically, an auto manufacturer. Instead of "protecting," these state laws became "protectionist," perpetuating one way of selling cars-the independent car dealer. The post is not a call to arms, but more of a position statement co-authored by Andy Gavil (director of the Office of Policy Planning), Debbie Feinstein (director of the Bureau of Competition), and Marty Gaynor (director of the Bureau of Economics). "The collective [cost] impact of [the state-by-state battles] is one of the major concerns here. [Tesla is] just trying to sell their cars" – Andy Gavin Gavil told AutoblogGreen that the main goal was to bring attention to the issue, which the post has certainly done. There are so many of state fights going on, he said, that this was a way to reach a lot of people at once. "We've been watching this for months," he said. "It's very clearly a state-by-state battle. We are concerned about Tesla litigating state-by-state. The collective [cost] impact of that is one of the major concerns here. They're just trying to sell their cars. The way the industry is reacting shows that it's about more than that." Gavil wouldn't go so far as to say that there should be new national rules – it's up to Congress to do that, he said - but he has also been looking at the taxi industry and the upstarts like Lyft and Uber. The competition angle sometimes doesn't get the attention it deserves, he said. "If there's a more open debate about it, that can only be a good thing." One of the groups opposed to Tesla's direct sales is the National Automobile Dealers Association (NADA), which represents 16,000 new car and truck dealerships with about 32,000 domestic and international franchises.

Audi, Jag, Kia and Tesla top Strategic Vision 2014 Total Quality Index

A couple weeks ago, J.D. Power released its latest Initial Quality Study, which gave high marks to Porsche, Hyundai and General Motors, with the latter earning more individual IQS awards than any other manufacturer. Now, it's Strategic Vision's turn, and it's doling out its praise not to Porsche, but to Tesla, which wasn't even included in the JD Power IQS.
The Model S was named the best vehicle overall in total quality, while Porsche's corporate brother and endurance-racing rival, Audi, was named the best premium brand, alongside Jaguar. Strategic Vision cited the Q5 and the ancient Q7 for individual segment awards, as well as the A5, which was a mere point off the top of its segment. SV also handed out compliments for the Audi's interior work. The win for the German brand is a nice improvement over its IQS score, with which it landed above the industry average, but solidly mid-pack.
Jaguar was without a segment winner, although SV did say that the Indian-owned English brand had a number of vehicles very near the top of their segments. This is the second significant win for Jag in two weeks, after it finished second overall on the JD Power IQS a few weeks ago.