Tesla Motors Is Leaving Singapore

Just six months after establishing its base in the city state, Tesla Motors has announced it is pulling out of Singapore. The electric car maker has stated its business model is no longer viable there because of the lack of green technology tax break and subsidies from the Economic Development Board of Singapore.

Without any tax breaks or incentives, the all-electric Tesla Roadster would cost between SGD400,000 and SGD500,000, a price that would put it firmly in the cross-hairs of some of the most desirable Porsche or Maserati machines. Tesla originally hoped to receive the incentives, which would help the electric sportscar sell for around SGD250,000.

The Economic Development Board, which is in charge of approving the tax break, said Tesla had not met 'technical requirements'. A number of bookings had been registered, with the condition of tax breaks being grated. A small number of customers even wanted the car at the increased price, yet Tesla says they are too few to justify staying in Singapore.

"Unfortunately, Singapore has not turned out to be the market we hoped it would be. Given the Roadster's limited production run and the enthusiastic support from both customers and governments for the vehicle in other markets, Tesla has decided to focus our limited resources elsewhere," Tesla Motors Asia-Pacific director Kevin Yu told The Straits Times.

In two countries in the region, namely Malaysia and Hong Kong, electric vehicles such as the Roadster are fully tax exempted. Japan offers a significant cash rebate to buyers of the Roadster, while some cities in the US and Europe are providing tax incentives as well.