Are Australian Tesla’s about to get cheaper?

white tesla

Are Australian Tesla’s about to get cheaper? An encouraging report is suggesting that Australian deliveries for Model 3 and Model Y from Tesla, may be delivered from Giga Shanghai towards the end of 2020 beginning of 2021. 

It has been a major point of contention, that the prices in Australia are too high for the average person. 

The idea of Tesla’s being manufactured and delivered from Giga-shanghai is not a new idea but one that many have requested for a while, my self included.

Australian Prices

If the Model 3 and Y are to be sold as a family car, or as the car for the masses, then the price needs to be more affordable, around the $30,000 – $40,000 dollars mark.

This price would give price parity with the average ICE vehicle and allow for natural competition. Currently in Australia costs of Tesla’s are almost double these amounts.

Now of course, part of these cost are taxes both Luxury Car Tax (LCT) and Import tax and every other person who is involved with the delivery tax. 

breakdown of a tesla

Giga-Shanghai

GIGA Shanghai
Featured Image Credit: WuWa Vision/YouTube

There is a possible change for the delivery of Tesla’s from Giga-Shanghai to the Southern hemisphere, inclusive of Australia, this was reported by Bloomberg and shared by Sawyer Merritt on twitter.

This change in location of manufacturing and delivery increases the chance of a possible price change. That would make the Model 3 and hopefully Model Y see price drops and become more affordable and achievable by the average person in Australia. This would continue to help to support the Tesla Mission. 

The news that it may actually be occurring is exciting for Australians looking to make their next purchase an electric car. 

The Electric Vehicle Council released a report in August 2019 called the State of Electric Vehicles. This report highlights some of the details relating to the possibility that 53% of people either already own or are thinking about purchasing an electric car as their next vehicle.

Model Y ordering

Model Y not an order page
Courtesy of Tesla.com

In Australia the Model Y is yet to be able to be ordered. This is not in line with the Model 3, which was available to be reserved from almost day one of the announcement. 

This delay with ordering could be aligned with the decision to ship cars from Giga Shanghai. Giga Shanghai has a number of buildings being constructed currently which have been rumored to be for the Model Y.

These would need to be completed for deliveries of model Y to Australia to occur.

Based on reports the building are close to being finalised which would in turn align with the timeline suggested for Giga Shanghai deliveries to Australia. 

Prices in Australia

Are Australian Tesla’s about to get cheaper? EV-HQ in February of this year commented on the prices of Tesla’s in Australia on Twitter and Elon Musk responded with this tweet.

This response was an indication that he also believed that prices for Tesla’s are too high, which he reinforced at the recent shareholders meeting held in July 2020, Tesla, Inc. Q2 2020 Financial Results and Q&A Webcast.

Tesla’s mission of transitioning the world to sustainable energy and transport must at its core be able to be flexible in the execution. The possible change to delivering and manufacturing vehicles for the Southern hemisphere and right-hand drive (RHD) countries is another step towards this achievement. 

Opportunities for Fremont

Fremont factory
Image courtesy of CleanTechnica.com

The knock-on effect of a change like this opens the way for reduced reliance on delivering all models of the Tesla fleet globally from Fremont and disperses the deliveries across the network of factories. Thus, building redundancy and stability in manufacturing and deliveries.

It also allows Fremont to start planning for the manufacturing of the Roadster which Elon has mentioned would come out of Fremont factory. 

Are Australian Tesla’s about to get cheaper? It is encouraging to see that possible changes may be coming to the way Tesla is progressing their vision and the positive impact it can have on the average person is a win for the individual, and also for the world as we try to fix the issues that we have caused over the last century. 

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Part 1 -Dave’s Journey to owning a Tesla

Lets’ Begin

Dirt road and the word start
Image by Gerd Altmann from Pixabay 

Part 1 -Dave’s Journey to owning a Tesla, I started this Website and Blog as a way to be part of something greater than myself.

What I found was a group of people just as passionate. Passionate about improving the environment and enjoying the cars whilst they do it. 

I have written this blog for over 18 months now. During that time I have had a second goal that I want to achieve. Owning my own Tesla. 

Tesla 

tesla model 3
Image courtesy of Tesla.com

Tesla Mission is the transition, of the world, to sustainable energy and transport. This mission aligns with my passion for all things electric cars and improving the future for our kids and generations beyond. 

But as many would know owning a Tesla in Australia is not so easy. The cost alone is high and there are too few incentives provided by the government. 

However, I am not swayed!

My passion to own a car that does not pollute when driven, has safety and technology at the core and can drive for over 500 km’s on a single charge just inspires me to begin the journey to ownership.

It is truly the iPhone of the motor vehicle world. 

Dave’s Journey to owning a Tesla

road with words follow your passion

So, my original plan was to get solar panels, then, a battery, followed by the Tesla. I have so far had solar installed a number of years ago and have not quite had the opportunity to get the battery installed. 

But if I am to own a Tesla, I need to start to put the pennies away.  

So, I am writing this new series to outline my process of getting there. 

It will be my mission to update you with my strategies, ideas, and outcomes, regarding how I am going with saving for a Tesla. 

By saving some money, over time it will allow me to grow a big enough deposit that the loan amount and repayments are manageable. Then we can look at the best loans.

To own the car sooner rather than later would be ideal, so I will try different strategies of maximising money. Any opportunity that i can earn more money through being thrifty or odd jobs I will write about here.

The goal is to show, and explain, how it is possible by showing others that it is, possible to own a car that could and has changed the future. 

My Starting Balance 

My starting balance is zero ($0) dollars which means that I am starting where most people start, at the beginning of a journey not knowing what’s to come, not sure where it will take me but excited by the possibilities that I have before me. 

A few months ago I had a response from Elon Musk around the prices in Australia. Since then a lot in the world has changed. So I have decided to work towards my goal.

I know the car I want, it is a Model 3 Long range, Red with Full Self Driving. It totals currently at AUD $113,000 drive away. 

break down of price for Long range model 3
Courtesy of Tesla.com

The performance model 3 was considered but due to price and the fact that I live in Australia and distance is king, I decided that the long range still has all the bells and whistles I need. 

Of course, I do like the base model with no bells and whistles that costs $88,000 drive away and most likely will be the one I end up with as the price hopefully will be more manageable. 

(insert image)

breakdown of price model 3 standard range plus
Courtesy of Tesla.com

But ultimately, I want a Tesla, sure there are other electric cars I could choose, and they are priced similar or a little lower than the Tesla however I have looked at them all and my heart is still set on a Tesla. 

So, I hope you find my blogs interesting, inspiring, practical and helpful. This is a journey we can share and I hope you follow along.

Part 1 – Dave’s Journey to owning a Tesla is my ideas and thoughts, I am not providing any financial advice or making any suggestion that I am an expert, I am just sharing my experience and passion for working towards a goal of mine.

So, thanks for sticking with me so far. The best is yet to come. 

Back to the beginning of where all good ideas start, an idea, a promise of what’s to come with savings, our passion and our love for Tesla and electric vehicles together we can achieve great things.  

Dave 

David McCann
David McCann

EV_HQ founder

Australian Tesla Prices

Image courtesy of Tesla

Australian Tesla Prices, 12 days have passed since I received a response to a simple twitter request to Elon Musk. It is incredible that a CEO of a global company is willing to respond to average people like myself. I am a passionate Tesla fan who is driven to see the mission of Tesla realized. 

To accelerate the worlds transition to sustainable energy. 

The only way I am able to currently assist with this is to spread the stories and information about Electric Vehicles to the greater community across Australia and the Globe. 12 Days ago, Elon gave me assistance to achieve this very goal.

I also wish to be able to transition my own house and family to utilizing Sustainable energy and vehicles. As I explained in my tweet to Elon the cost of Tesla’s in Australia is not within the reach of the average Australian. With a starting point of the base model 3 with no Full Self Driving is $71512. (Australian Dollars) This is a hefty sum for anyone to swallow. 

In comparison, in the United States the price of the same car is $39990 (US Dollars). When this is converted using the conversion rate of $1.51 us dollars to the Australian dollar the conversion cost equates to $60385(Australian Dollars). 

Australian Tesla Prices

Comparison between USD and AUD for Model 3 Tesla

So, the question needs to be asked what is the difference of $11127 used for?

According to the Australian Bureau of statistics (https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?page=40 ) the average wage in Australia (based upon Average Weekly ordinary time earnings (AWOTE) in June of 2019 of $1634.90 multiplied by 52 weeks of the year equals $85014.80(AUD), before tax. If the taxation rate is approx. 32.5 cents in the dollar for every dollar above $37000. Once this calculation has been completed the approximate amount that one individual will earn is $70000. This sounds like a large number however there is still the home loan/rent, Utilities, Living expenses, Car expenses, schooling for kids, etc. These numbers outline the fact that purchasing a car is not only a big decision, but one primarily driven by the cost.

Australian living expenses have been on the increase in the last 10 years due to a number of reasons least of all that environmental factors are playing their part with long droughts, 100-year storms, flooding and bushfires that are devastating areas of produce and farming.

This impact is felt in the hip pocket of every Australian across the country and that only increases the cost of living expenses and consumes the savings which historically have been put towards the wants rather than the needs. 

If Tesla, and by extension Elon Musk, truly wish to gain traction in Australia there is a real need to drop the price so that the Average Australian family can afford the Model 3. The Model 3 is well suited to the Australian Market. Especially city dwellers. The Cybertruck would be well placed for those who live in the country.

If Elon and Tesla could find a way to reduce the cost of either building or transporting and investigate the $11127 disparity between the US and Australian numbers, I believe the uptake of the Model 3 in Australia would advance greatly. Furthermore, I also believe that the mission that Tesla has prided itself upon would also be realized that much quicker. 

Whilst investigating the above points I also reviewed the comments from the Tweet. I came across a number of people comments who also expressed their challenges with the cost within their countries, these included 

All of these people highlighted their challenges with cost of Tesla’s, however in a number of cases they also voiced that they would buy a Tesla as their next car if they could afford the price.

Australian Tesla Prices.

These are customers in waiting.

Waiting for a price that they can afford and manage on their wages. Their passion for the cars is not wavering but the cost is a real factor. 

I also had a number of people talk about their experience when buying a Tesla at the current prices and outlined that a number of Taxes here in Australia were also considerably high and unnecessary like the “Luxury Car Tax”, which was introduced to assist local car manufacturing. Unfortunately, in recent years all car manufacturing by all big companies has ceased in Australia. This was due in part to a greater acceptance of foreign manufacturers and the improved quality and variety of vehicles on offer. Now that we have no manufacturers and all vehicles are imported this tax serves no purpose. 

So, where to from here so more people can gain access to some amazing environmentally friendly cars and the suite of other products that Tesla has on offer. 

Some ideas include:

  • Tesla 
    • Find cost saving s to reduce Model 3 Price
    • Investigate the price differences highlighted above
    • Leasing (suggested by @TeslaGong)
    • Supplying Australia with Giga Shanghai Tesla’s 
    • Compartmentalize features of Tesla’s that can be purchased at a later date
    • Build an Australian Giga Factory #GigaOz
  • Government 
    • Incentives (Green rebate)
    • Remove the Luxury car tax from all Electric Vehicles
    • Reduce stamp duty, registration, etc. 

 These changes would have a profound effect on the footprint of Electric vehicles in Australia and also assist people to truly transition to a sustainable energy future. 

Dave

David McCann
David McCann

EV_HQ founder

Rating: 1 out of 5.

Appendix ( Comparison between USD and AUD)

Offers of sponsorship and collaboration are welcome.

please contact Dave at electricvehicleHQ@gmail.com, on twitter @evhq2 or on the contact page of EV-HQ.com.

Dreams of owning a Tesla out of reach for Australian’s?

long road to mountains in distance
Photo by Simon Migaj on Pexels.com

Elon Musk and Tesla this week lived up to expectation and again helped out Australians and New Zealanders with the dropping of the price of the connectivity to Tesla’s. It got me to thinking about my dreams of owning a Tesla in Australia and how they still seem out of reach 2 years after the Model 3, the car for the masses, was released. Are peoples dreams of owning a Tesla out of reach for Australian’s?

The reduction in connectivity seems a small thing and normally it wouldn’t be significant, but the reduction was approx. 40%. Such an amazing and gracious act.

tesla with computer vision demo

However, over the last couple of years, we in Australia and by extension New Zealand, haven’t had a lot to celebrate when it comes to the price of electric vehicles as prices are way out of reach for your average person. 

I am not wealthy and in some cases I live from pay check to pay check due to the increase in living expenses over the last 10 years. Studying hard for many years has allowed me to have have a reliable job. I have a loving family and I want to look out for them as much as I can. This includes protecting them when they are driving to work or school. 

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About 4-5 years ago I, like thousands before me, scrolled through YouTube looking for something to occupy my interest and I came across a video talking about Tesla. I had not heard about Tesla, the mission or a guy named Elon Musk. What I saw was a car that was truly amazing, revolutionary, and above all it was considered the safest car on the road. 

Up until this time I had not really been aware of the new evolution of the electric car and a person called Elon Musk. 

Since then, until now, I have been a kid in a candy store absorbing all the information I can and gaining a greater understanding of their purpose and mission. I found a community that was passionate, friendly and great fun covering the globe and looking at every aspect of the vehicles, the company and the mission. They have been a great companion over the years and have given more than they take. I am grateful for this.

many feet coming together
Photo by Ingo Joseph on Pexels.com

When the Model 3 was announced to the world I had hope! Hope of being able to afford the car of my dreams and hope they were not out of reach in Australia. Dreams of owning a Tesla out of reach for Australian’s?

Tesla has worked the last 10 years to deliver the car to the masses. The promise was a car that would be affordable so that the average mum and dad could afford it. This has fed my passion and desire to own the Tesla model 3 ever since the announcement.

red model 3 driving away
Image courtesy of www.Tesla.com

However, my glee at an affordable car was short lived when the prices were announced for the Model 3 in Australia. The chance of owning a Tesla for the average family is becoming more and more out of reach letting many people’s dreams of owning a Tesla in Australia become further out of reach. 

I trust Elon Musk’s vision for Tesla and he has shown that he and Tesla are open to price changes as demonstrated by the changes to the connectivity fee. A business needs to earn money to help grow the business and the vision is to build gigafactory’s on every continent which should assist with the reduction of costs and flow on to price as we have seen in China.

So……. are my dreams of owning a Tesla in Australia truly out of reach?There doesn’t seem to be a clear answer but there are possible solutions.

Currently we as a global community are finding our lives turned upside down, and the last thing anyone would expect a reduction in prices occurring anytime soon. One might see prices rise due to a downturn in production out of Fremont due to its closure whilst isolating.

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However, where one door closes another opens and in Australia and New Zealand right now there is opportunity for Tesla to thrive. Airlines are grounded and people are starting to emerge from isolation and will want to travel. Now is the time to drop the price and let people experience the Tesla life. Take this opportunity to make prices affordable, allow leasing, bring Made in China Model 3’s into the country and help to drive opportunities to bring the price down. 

Are dreams of owning a Tesla out of reach for Australian’s? No if the above opportunities were implemented. If they were it would let dreams become reality and watch the sustainable future appear before our eyes.

Dave. 

Dave the cartoon image
Written by David McCann 25/4/2020

Offers of sponsorship and collaboration are welcome.

EV HQ

please contact Dave at electricvehicleHQ@gmail.com, on twitter @evhq2 or on the contact page of EV-HQ.com.

Australian Tesla Prices

Image courtesy of Tesla

Australian Tesla Prices, 12 days have passed since I received a response to a simple twitter request to Elon Musk. It is incredible that a CEO of a global company is willing to respond to average people like myself. I am a passionate Tesla fan who is driven to see the mission of Tesla realized. 

To accelerate the worlds transition to sustainable energy. 

The only way I am able to currently assist with this is to spread the stories and information about Electric Vehicles to the greater community across Australia and the Globe. 12 Days ago, Elon gave me assistance to achieve this very goal.

I also wish to be able to transition my own house and family to utilizing Sustainable energy and vehicles. As I explained in my tweet to Elon the cost of Tesla’s in Australia is not within the reach of the average Australian. With a starting point of the base model 3 with no Full Self Driving is $71512. (Australian Dollars) This is a hefty sum for anyone to swallow. 

In comparison, in the United States the price of the same car is $39990 (US Dollars). When this is converted using the conversion rate of $1.51 us dollars to the Australian dollar the conversion cost equates to $60385(Australian Dollars). 

Australian Tesla Prices

Comparison between USD and AUD for Model 3 Tesla

So, the question needs to be asked what is the difference of $11127 used for?

According to the Australian Bureau of statistics (https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?page=40 ) the average wage in Australia (based upon Average Weekly ordinary time earnings (AWOTE) in June of 2019 of $1634.90 multiplied by 52 weeks of the year equals $85014.80(AUD), before tax. If the taxation rate is approx. 32.5 cents in the dollar for every dollar above $37000. Once this calculation has been completed the approximate amount that one individual will earn is $70000. This sounds like a large number however there is still the home loan/rent, Utilities, Living expenses, Car expenses, schooling for kids, etc. These numbers outline the fact that purchasing a car is not only a big decision, but one primarily driven by the cost.

Australian living expenses have been on the increase in the last 10 years due to a number of reasons least of all that environmental factors are playing their part with long droughts, 100-year storms, flooding and bushfires that are devastating areas of produce and farming.

This impact is felt in the hip pocket of every Australian across the country and that only increases the cost of living expenses and consumes the savings which historically have been put towards the wants rather than the needs. 

If Tesla, and by extension Elon Musk, truly wish to gain traction in Australia there is a real need to drop the price so that the Average Australian family can afford the Model 3. The Model 3 is well suited to the Australian Market. Especially city dwellers. The Cybertruck would be well placed for those who live in the country.

If Elon and Tesla could find a way to reduce the cost of either building or transporting and investigate the $11127 disparity between the US and Australian numbers, I believe the uptake of the Model 3 in Australia would advance greatly. Furthermore, I also believe that the mission that Tesla has prided itself upon would also be realized that much quicker. 

Whilst investigating the above points I also reviewed the comments from the Tweet. I came across a number of people comments who also expressed their challenges with the cost within their countries, these included 

All of these people highlighted their challenges with cost of Tesla’s, however in a number of cases they also voiced that they would buy a Tesla as their next car if they could afford the price.

Australian Tesla Prices.

These are customers in waiting.

Waiting for a price that they can afford and manage on their wages. Their passion for the cars is not wavering but the cost is a real factor. 

I also had a number of people talk about their experience when buying a Tesla at the current prices and outlined that a number of Taxes here in Australia were also considerably high and unnecessary like the “Luxury Car Tax”, which was introduced to assist local car manufacturing. Unfortunately, in recent years all car manufacturing by all big companies has ceased in Australia. This was due in part to a greater acceptance of foreign manufacturers and the improved quality and variety of vehicles on offer. Now that we have no manufacturers and all vehicles are imported this tax serves no purpose. 

So, where to from here so more people can gain access to some amazing environmentally friendly cars and the suite of other products that Tesla has on offer. 

Some ideas include:

  • Tesla 
    • Find cost saving s to reduce Model 3 Price
    • Investigate the price differences highlighted above
    • Leasing (suggested by @TeslaGong)
    • Supplying Australia with Giga Shanghai Tesla’s 
    • Compartmentalize features of Tesla’s that can be purchased at a later date
    • Build an Australian Giga Factory #GigaOz
  • Government 
    • Incentives (Green rebate)
    • Remove the Luxury car tax from all Electric Vehicles
    • Reduce stamp duty, registration, etc. 

 These changes would have a profound effect on the footprint of Electric vehicles in Australia and also assist people to truly transition to a sustainable energy future. 

Dave

David McCann
David McCann

EV_HQ founder

Rating: 1 out of 5.

Appendix ( Comparison between USD and AUD)

Offers of sponsorship and collaboration are welcome.

please contact Dave at electricvehicleHQ@gmail.com, on twitter @evhq2 or on the contact page of EV-HQ.com.