Tomahawk, WI 01/27/2014 (BasicsMedia) – Tesla Motors Inc. (NASDAQ:TSLA) is targeting China to be the automaker’s second largest market after the U.S. Chief Executive Officer, Elon R. Musk is expecting that the sales of the company’s electric Model S cars in the country should be as much as that in the U.S. He estimates that as per the demand in the world’s largest auto market, this might be accomplished as early as 2015.

New plant in China

The electric car maker would make its Model S cars in China from prices starting $121,280 which amounts to 734,000 yuan. The demand in China is so high that it requires the company to open a plant in the region. Musk, the CEO and the co-founder is planning to inaugurate their new plant in China in late March, marking the company’s entry in the Chinese market. He said in a statement that even if they do not go ahead with their existing plan of establishing a local plant, China would still offer them the second largest market after the U.S.

Tesla Motors Inc. (NASDAQ:TSLA)’s Musk is aiming at selling the electric cars in huge quantities in the markets of Japan and Europe apart from China in a strategy to boost his U.S. business. The 42 year old had not fallen short in surprising analysts with the company drawing fourth quarter deliveries 20% above company’s targets. While the billionaire is certain of the vastness of this new project, he doesn’t want to get too excited about it.

China to pay extra price

 In a statement, Tesla Motors Inc. (NASDAQ:TSLA) said that the price for the Model S car will be 50% more than that in the U.S., where it is available in $81,070. This puts the car in the same league as Volkswagen AG (VOW)’s Audi S5 Sedan and Bayerische Motoren Werke AG’s 5 series Sedan, as reported by a car pricing website, Autohome. Musk explained that this difference is on account of the extra duty that they have to bear in importing the vehicle from California to China. The company needs to pay a duty of about 25% the marked price of the car and also other taxes and shipping costs additionally, he said. On the other hand, he does not want to rip off potential customers there as it would not be the wisest decision considering long term effects.

In this context, the Shanghai based director of researcher LMC Automotive said that Tesla Motors Inc. (NASDAQ:TSLA) was charging a fair price for its flagship Model S sedan in China. He said that they could expect to rope in premium customers living especially in big cities, at this price.

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