Tesla’s surprise – Russian orders soar
Embattled technocrat Elon Musk continues to wage a war of attrition against Tesla naysayers. The company – CEO Musk’s pure-play for the luxury electric car space – recently beat (an albeit delayed) target for Model 3 production. And while the race seems to have spurred Tesla’s share price, paradoxically, winning it sent it back down. As a result, Tesla’s market cap has remained pretty much flat year-to-date. However, while the company’s share price might not be moving that much, its products are – at least, they are in Russia, where all-time sales have nearly doubled!
Tesla’s share price is down year to date – by less than a percent
Source: Yahoo Finance
Tesla’s sudden success in Russia is down to the unexpected addition of electric vehicles to products on offer at mobile phone retailer Svyaznoy, which is backed by billionaire Alisher Usmanov.
In June, Svyaznoy partnered with the Tesla Moscow Club to record sales, and said that it received orders for 236 vehicles throughout the month. That might not be a bank-breaking figure, but it looks pretty impressive when you consider the fact that there have only been around 300 Tesla’s registered in the country since 2014!
Buyers can configure their Teslas on Svyaznoy’s website and get it delivered to any city where the mobile phone carrier has one of its 5,500 stores. And Tesla fans – who are unquestionably the wealthiest Russians – are willing to pay top dollar to get hold of one.
Price tags can be as much as 60% higher in Russia than the rest of Europe, thanks to customs duty, scrapping fees, and local paperwork. However, to their owners – a list of Who’s Who in the country that includes names like Roman Abramovich – it’s worth it.
Dominion holds Tesla in its Global Trends Luxury Fund.
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