Tesla in Israel to Focus on Sales to Private Buyers for Now, as Demand Outstrips Supply

Tesla in Israel to Focus on Sales to Private Buyers for Now, as Demand Outstrips Supply

Photo: Sam Sheffer/YouTube

Tesla Israel will not sell its vehicles for use as taxis, at least for the time being. While the vehicle is ideal for these purposes, the company says it prefers to target private buyers for now.

Tesla cars, which will be delivered to customers next month, will be designated for private use only. While they are perfect for use as taxis and can reduce operator costs and pollution, Tesla Israel will not be selling its electric vehicles as taxis for now, according to Calcalist.

Israelis looking to buy Teslas and use them as taxis could get one with zero sales tax and get a VAT refund. “Tesla promises a driving range of upwards of 400 kilometers, which would suffice for my daily needs, without having to take a mid-day break to charge it,” a veteran taxi driver told Calcalist.

Tesla Model 3, which costs a private user NIS 180,000 (US $55,360) in Israel, would cost a taxi driver NIS 144,000 (US $44,290) after taxes. Although the cost of buying a Tesla is about 40,000 shekels more than the current popular diesel taxis, the electric vehicle significantly reduces regular fuel and maintenance costs.

Most taxis in Israel are sold through specialized agents who have exclusive agreements with importers. Reportedly, Tesla has yet to reach an agreement with any of them. Tesla Israel said that, at the moment, the company prefers to focus exclusively on sales to private customers, and the possibility of expanding its sales will only be considered in the future.

Tesmanian previously reported that the company's cars are highly popular in Israel. Tesla has offered very competitive prices that are made even more profitable by incentives. After the start of sales, all available cars were sold out on the first day. All orders placed later will not be completed until Q2 2021. Apparently, sales of the vehicle for commercial use will not begin until Tesla satisfies the high demand among private customers.

© 2021, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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