Israel is the world's most expensive country in which to buy a Tesla S electric vehicle, according to comparative international figures provided by the website of AFIA Insurance Brokerage Services in Dubai in its recommendations for customers importing cars from abroad.
According to the data, the basic version of the Tesla S, which costs a customer in the US $91,000 (as of today following the most recent price increase), costs a customer in Israel about $166,000 including all taxes (NIS 535,000). This is 26% above the price in the UK, the second most expensive country for a Tesla S and 82% above the US price.
There are two major reasons for this price difference. The first reason is Israel's tax system, which in addition to 17% VAT and purchase tax of 10%, imposes an additional tax on luxury cars costing more than NIS 300,000, and sets a tax benefits ceiling of NIS 75,000 for electric cars.
The second reason is the succession of price rises for Tesla cars since they first landed in Israel earlier this year, with the Tesla S's opening price being NIS 420,000. Since the launch prices in Israel have increased 27% while in the US they have only increased by 12%. The most recent rise of NIS 20,000 was earlier this month.
The Tesla 3 SR version, the main model being sold in Israel, currently costs $19,000 more than in the US but is only 13% more expensive than in Germany before the tax benefits on an electric car.
In the US, Tesla has raised the non-refundable deposit for ordering a Tesla from $100 to $250. It is not clear if this new policy will be extended to other countries. The deposit for ordering a Tesla in Israel is currently NIS 500. Paying the deposit for early orders in Israel allowed buyers to save tens of thousands of shekels for a negligible amount when prices were subsequently hiked.
Deliveries of the first Tesla S models to Israel have been postponed several times with the first consignment finally expected in the last quarter of 2021 or the first quarter of 2022. The next consignment of Tesla 3s is due to dock in Israel in November.
Published by Globes, Israel business news - en.globes.co.il - on August 24, 2021
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