US-based electric vehicle maker Tesla is gearing up for expansion in Israel. “Globes” has learned that the company recently signed a lease on a property in the industrial zone of Netanya on which it will set up a large sales and service center. The privately-owned property, five dunams in area, is at 39-41 Hakadar Street in north Netanya, close to the sales and service center of rival Chinese electric vehicle brand Geely Geometry.
10% of new cars sold in Israel in 2022 were EVs
Chinese shake up Israel’s new car market
Israel set to import three more Chinese EV brands
According to a presentation by realtor Yair Levy Real Estate Strategy, which brokered the deal, the property has 3,300 square meters of built space, and building rights of 300-400% for commerce and offices.
The property was originally offered for sale for NIS 47 million, but as far as is known Tesla has signed a long lease on it. Sources inform “Globes” that several vehicle importers expressed interest in the property.
The new center will feature Tesla’s first permanent showroom in Israel, and a bodywork and paint workshop that will replace Tesla’s existing small garage next to the company’s current management headquarters in Israel in Kiryat Ata. Up to now, Tesla has marketed its vehicles in Israel online and at pop-up spaces in shopping malls.
The showroom, due to be inaugurated by August this year, will be constructed on the format of the company’s showrooms around the world, which are known as Tesla Stores. Besides displaying new vehicles, it will offer a trade-in service and a stock of vehicles for immediate sale.
Since Tesla began selling in Israel in March 2021, it has put more than 10,000 new cars on Israel’s roads. Following an aggressive price cut announced on January 13, it has accumulated thousands more orders, and expects to deliver 3,000-4,000 vehicles in the first half of this year, subject to availability of stocks.
Up to now, Tesla has provided repair and roadside services in Israel through Shagrir, operating as a sub-contractor, but the increasing pace of sales has created growing pressure on the company’s service and parts network.
The rise in the number of new vehicle brands launched in Israel in the past year is now boosting demand on the part of vehicle importers for showrooms in all of Israel’s large cities.
Tesla stated in response to the report: “The company does not comment on internal matters.”
Published by Globes, Israel business news – en.globes.co.il – on January 25, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
For all the latest Business News Click Here