Tesla will open a pop-up shop in the Ramat Aviv mall

As revealed in "Globes," the automaker under the direction of Alon Musk will soon enter Israel. Tesla's selling method is based on hard prices as well as showing cars in showrooms or "customer experience centers", when you make your purchase online rather than in front of salespeople.

Tesla will open a pop-up shop in the Ramat Aviv mall

As Dobby Ben Gedaliah revealed in "Globes", the Tesla automaker will enter the market in Israel. Already this January, it will launch a pop-up shop in the Ramat Aviv mall. About two weeks ago, Ben Gedaliah announced that Tesla had published two "needed" ads on its international site as part of its preparations for entering direct activity in the Israeli automotive market.

One job offered was for a manager for the Tesla Shop Experience Center to be set up in Tel Aviv, and the other for recruiting salespeople. Shortly before, Tesla announced that it was seeking a CEO for its future operations in Israel. The ads were removed following multiple inquiries. About a month ago, Tesla listed a wholly owned subsidiary in Israel called "Tesla Motor Israel."

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Tesla Model S passenger compartment (Photo: Keenan Cohen)

Tesla seeks store manager in Israel (Photo: Keenan Cohen, Keenan Cohen)

How much will it cost?

The first swallow for the activity of the automotive giant owned by Elon Musk will begin, as stated, with the opening of a pop-up shop in the Ramat Aviv mall. Shoppers at the mall, which appeals to a premium audience in its store mix, will be impressed with the car models on site.

Tesla’s global expansion included entry into Europe with a Series 3 that includes relatively compact cars. In September 2019, 17,490 cars of this model were sold in Europe, making it the best-selling electric car that month. Since the beginning of the year, approximately 75,000 Tesla vehicles have been sold in Europe. Tesla's entry into small markets, which is also part of Israel, comes as a result of customer demand. About three years ago, she entered Jordan.

And what about the price? Tesla 3 is sold in the US starting at $ 40,000, and the crossover Tesla Y price that joins next year starts at $ 35,000. Tesla is currently launching a Series 3 production at a new plant in Shanghai. Israel's current tax calculation on electric vehicles in Israel before the January tax green update, which includes a 10% purchase tax, freight and VAT, could reach NIS 200-220,000 for a base model of Tesla S with a 400-mile range, and maybe Less so for the Y model with a range of about 300 miles in the base configuration.

About NIS 200-220,000 for a basic S model

Tesla Model S (Photo: Manufacturer, Manufacturer Website)

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The company's more senior models, S and X, could cost close to NIS 400-500,000. Such a price level appeals to a more limited market segment where European trams from Audi, Mercedes, Jaguar and others on the road will soon be competing.

Tesla's selling method is first and foremost at hard prices - a challenge with Israeli consumers who are passionate about promotions and discounts; And secondly, by showing the cars in showrooms or in "customer experience centers" when making the purchase online rather than in front of salespeople.

The "required" ads Tesla recently published indicate that such a center is also planned to be built in the Tel Aviv area. This is a challenge for Israeli consumers, because Israeli consumers are accustomed to buying more and more online - but as far as the automotive sector is concerned (except for spare parts).