Tesla has started to take orders for its flagship Model S cars in China through Alibaba's Tmall.com.
Tesla, the renowned electric car making company, is expanding its presence in the global market by opening online sale of Model S cars through Alibaba's e-commerce platform, Tmall.com. This is the first time that the luxury car maker has opted to sell its electric cars through a platform other than its own website in China. Tesla's electric cars will be joining bigger rivals General Motors and Volkswagen AG that have a digital store running through Alibaba's online shopping mall.
In a report by Bloomberg, Tesla China spokeswoman Peggy Yang said the buyers can deposit 50,000 Yuan ($8,200) for the electric car through Tmall.com, which will be frozen into the customers' mutual fund Yuebao account. The benefit of such a move is that consumers will enjoy the interests of the deposit before the rest of the payment is made towards the car. After financial settlements, buyers can collect their ordered vehicle in one of the five Tesla collection points in Beijing, Shanghai, Hangzhou, Chengdu and Shenzhen, Tech Node reports.
In addition to selling cars through Tmall store, Tesla will also offer various accessories to customize the vehicle. They include clothing, cap, waist pack, toolbox, mug and blanket.
Tesla's partnership with Alibaba Group Holding dates back to April, when the Chinese e-commerce company introduced Alipay. The new payment method was launched for Chinese consumers to purchase Tesla cars online. Additionally, the e-commerce giant updated its AutoNavi mapping service in September to include Tesla's POI charging points.
Tesla entirely relies on its online stores for the sale of cars directly to its consumers, a move that has created a lot of tension among the auto dealerships in the United States. But, it is too early to predict the success of Tesla's online sales through a third-party retail channel. According to Bloomberg's Jamie Butters, GM sells few hundred cars through its Alibaba store, while nearly 4 million are sold through its retail franchises.
