Tesla Launches Online Configurator in Israel & Shocks Local Market with Much Lower Prices

Tesla Israel

Tesla has launched its order configurator in Israel, and prices are shaking the country’s auto market. Unlike other car exporters, Tesla has announced prices excluding taxes, which allows consumers to see exactly how much of a car’s final value ends up in the government coffers.

On Monday night Israel Time, Tesla announced the official prices at which its cars will be sold in Israel. They were significantly lower than expected, which is great news. Another equally great piece of news is that the first orders will be completed by the end of Q1 2021, in March.

Tesla Model 3 Standard Range Plus will be the cheapest model sold in the Israeli market. Its cost is NIS 169,990, excluding taxes. Including taxes, the cost of the car will be NIS 179,213 (around $54,000), which is quite a reasonable price.

Model 3 Long Range is priced at NIS 199,990, or NIS 220,051 (about $67,000), including taxes. The Performance version costs NIS 219,990, or NIS 251,401 (about $76,000), including purchase and luxury tax. All prices are significantly lower than were anticipated. For example, the Model 3 Standard Range Plus was expected to cost NIS 300,000.

Tesla also offers Model S and Model X in Israel. The recently refreshed Model S sedan costs NIS 319,990 (about $97,000) or NIS 420,124 (about $127,000) including taxes. Model S Plaid starts from NIS 449,990 (about $136,000) or NIS 644,273 (about $195,000) including taxes. Plaid Plus is priced at NIS 504,990 (about $153,000) or NIS 738,613 ($224,000) including taxes.

Model X Long Range will cost Israeli owners NIS 334,990 (about $102,000) or NIS 446,671 (about $135,000) including taxes. Model X Plaid costs NIS 449,990 (about $136,000) or NIS 644,814 (about $196,000) including taxes.

Tesla’s strategy of announcing ex-tax prices puts seasoned car importers in Israel in a quandary. Importers refuse to disclose the price reductions they receive on the imported cars. The California-based manufacturer has done what no other importer has dared. Now, buyers will clearly understand how much money they pay for a car, and how much money is paid to the state.

In addition, Tesla buyers will benefit from a lower purchase tax due to the fact that it is an electric vehicle. Israelis pay only 10% purchase tax on electric vehicles, while owners of hybrid cars pay 45%, and gasoline and diesel cars a whopping 83%

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