Israel is the most costly spot to purchase a Model S. It is so expensive that AFIA Insurance Brokerage Services says importing one into the country is cheaper than buying directly from Tesla.
After taking all taxes into consideration, Tesla’s flagship sedan starts at $166,000 USD.
According to the data, Israeli prices are 26% higher than the UK and nearly 85% higher than the US, where the Model S starts at $89,990 USD.
The reason for this is two-fold.
First, Israel has a 17% VAT and a 10% purchase tax. In addition, they also have an additional tax on luxury vehicles costing more than 300,000 NIS ($92,800 USD), reports The Globes.
The Tesla Model S originally launched at 420,000 NIS ($130,000 USD) in Israel.
The second reason is the succession of the price increases for the vehicle. Since its initial launch in Israel earlier in 2021, the Model S has increased 27%. The most recent price increase was earlier this month when it rose by an additional 20,000 NIS ($6,100 USD).
However, the Dubai-based AFIA Insurance Brokerage Services suggests that prospective Tesla owners buy foreign and import the vehicle to clients. Even with import duties and costs associated with bringing in a foreign vehicle, the Model S still ends up being cheaper than buying directly from Tesla in Israel.