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Tesla's expansion into the South African market has hit another roadblock, prolonging the wait for eager customers. Despite the deposit collection that began eight years ago for the Model 3, there have been minimal updates and no official launch plans announced.
In the past, Elon Musk has alluded to South Africa as a potential market. The addition of South Africa on Tesla's reservation page in March 2016 sparked enthusiasm. Prospective buyers were able to place a R15,000 deposit, with expectations of deliveries commencing as early as 2018, following rollouts in North America, Europe, and Asia-Pacific right-hand drive markets.
The anticipation was further fueled by Musk's hint at a possible store opening at the end of 2019. Unfortunately, these hopes have been dampened by the reality of high import duties, rendering the business proposition seemingly unviable for Tesla. The import duties, Musk argues, are restrictive for electric cars not manufactured locally.
To compound frustrations, South African reservation holders find themselves in a refund limbo. Despite the commitment of a full refund prior to a purchase agreement, Tesla's communication channels for refund inquiries appear to have gone cold.
Tesla is silent on its formal position regarding its South African operations, which leaves Tesla enthusiasts and reservation holders in a state of uncertainty. Meanwhile, BYD, Tesla's Chinese rival, has made inroads into the South African market with the launch of affordable passenger EVs.
The unresolved status of Tesla in South Africa comes as a surprise, considering the EV maker's popularity as demonstrated in recent polls. Tesla ranked a close second to country's leading car brand Toyota, indicating significant market interest and potential for success.
Customers and industry watchers alike are left to wonder if Tesla will ever overcome the challenges presented by South Africa's current import duty structure or match the pace of its competitors in capitalizing on the growing EV demand in the region.