Tesla's Model X Available for $240000 in China's Grey Market

Aug 10, 2016 03:24 AM EDT

A Tesla Motors Inc. Model X electric sport utility vehicle (SUV) stands on display at the Beijing International Automotive Exhibition in Beijing, China, on Monday, April 25, 2016.

(Photo : Getty Images) A Tesla Motors Inc. Model X electric sport utility vehicle (SUV) stands on display at the Beijing International Automotive Exhibition in Beijing, China, on Monday, April 25, 2016.

People in China are willing to cough up thousands of dollars to get their hands on Tesla's Model X.

Tesla made its Model X available for purchase in China since June and the vehicle's demand exceeded expectations in the country with more than 3,000 reservations for the all-electric SUV.

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Tesla is unable to keep up with the increasing demand, because of which customers in China have been put on the waitlist. However, there are many people who aren't willing to wait for the car and are shelling out about $240,000 as a grey market premium to get it early, according to Forbes.

(Photo : Getty Images)

The Model X P90D is priced at $115,000 in the U.S. and costs $1,70,000 in China, which means that customers are paying $70,000 more for vehicles that are not even China-specific.

A Tianjin-based dealer is acquiring the vehicles in the United States before shipping them to China and selling them on social media, earning a hefty profit in the process.

Business must be booming as the dealer told Forbes that all his red models were sold and he only had white models available.

Even though grey-market imports in China are legal, they carry heavy restrictions. As far as the Model X is concerned, the warranties have been voided, which means Tesla dealers will carry out repairs but consumers will have to pay for them.

Because these vehicles are not intended for the Chinese market and are US-specific, some of the features may not work. For one, the language supported by the operating system is English and the navigation system uses Google Maps, which is blocked in China.

TagsTesla, Tesla Model X, china, Tesla China, Tesla Model X China, China Tesla Model X