Singaporeans in Tesla ‘buying frenzy’ despite costing 3X US price tag 

Singapore — Teslas are well on their way to becoming the country’s latest status symbol, with Singaporeans caught up in a “buying frenzy” to acquire the electronic vehicles (EV) despite a price tag three times that of the United States.

At present, Tesla is the best-selling EV in the country.

Let’s look at some numbers, shall we?

In the US, the basic Tesla, Model 3, costs less than S$60,000, while in Singapore, it’s sold for almost S$200,000.

The reason for the big difference is that in Singapore, car owners are required to pay a significant ownership levy.

An Oct 28 Reuters report said that Tesla this week exceeded $1 trillion in market value, besting the combined value of Toyota, Volkswagen, Daimler, Ford Motor Co and General Motors.

Another sign of the company’s ascendancy is that from only 30 Teslas in Singapore in the first half of 2021, there were 487 in the third quarter, a stellar rise of over ten-fold, based on data from the Land Transport Authority (LTA).

Reuters added that last month, Tesla rated as the sixth most popular car brand in September, besting Kia, Audi and Nissan.

There are two contributing factors identified behind the rise in Tesla’s sales and popularity, a subsidy of as much as S$45,000 for people who purchase EVs, and the fact that the company has done better in surviving the supply chain issues that have beset its rivals.

Singapore began a push toward adopting EVs for the sake of the environment, offering perks as a motivation.

And while the demand may not always be so great, some believe that Tesla’s branding will help usher in the age of the EV in Singapore. 

“I think Tesla will help with the shift: this is buying an EV while being cool and trendy,” Reuters quotes Niels de Boer, an electromobility expert at Nanyang Technological University (NTU), as saying.

But for now, the demand for Teslas in Singapore certainly continues to be high, with would-be owners needing to wait for as much as three months to get their new vehicles.

And despite its hefty price tag, a Tesla is still more affordable than a Mercedes Benz or a BMW, one buyer told Reuters.

Another buyer, Tim Shim, is quoted as saying, ”I bought the car because I’m a supporter and shareholder of the company.”

Mr Shim actually reserved a Model 3 in 2016, but only got the car this year.

The number of Teslas registered in Singapore last month, 314, nearly equalled the number of Hyundais, although this figure is still considerably behind Honda (466) and Toyota (778).

/TISG

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