Trade & Industry

Elon Musk reveals why Tesla hasn’t launched in South Africa

For the first time, Elon Musk has revealed how come Tesla hasn’t launched its range of electric vehicles in South Africa. The South African-born co-founder and CEO of Tesla, Musk took to his social media platform over the weekend, X to reply to a question about the matter. South African X user Ziyaad Mohomed asked when

Elon Musk reveals why Tesla hasn’t launched in South Africa

Elon Musk reveals why Tesla hasn’t launched in South Africa

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Elon Musk reveals why Tesla hasn’t launched in South Africa 
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For the first time, Elon Musk has revealed how come Tesla hasn’t launched its range of electric vehicles in South Africa. 

The South African-born co-founder and CEO of Tesla, Musk took to his social media platform over the weekend, X to reply to a question about the matter. South African X user Ziyaad Mohomed asked when Tesla cars would be available, to which Musk answered by saying: “Import duties are super high in South Africa to protect the domestic industry. Doesn’t make sense for Tesla, given that electric cars are not locally made.” 

High import duties in South Africa, designed to safeguard the domestic industry, pose a challenge for Tesla.  

Musk’s recent remarks about Tesla in South Africa coincide with statements from Trade, Industry & Competition Minister Ebrahim Patel in December. Patel expressed the possibility of South Africa commencing the export of locally manufactured electric vehicles by 2026.  

Import duties are super high in South Africa to protect the domestic industry.

Doesn’t make sense for Tesla, given that electric cars are not locally made.

— Elon Musk (@elonmusk) January 20, 2024

The government’s white paper from November 2023 outlines the automotive industry’s goal of integrating electric vehicles (EVs) into production and consumption alongside internal combustion engine (ICE) vehicles by 2035. Musk’s observations highlight the complexities Tesla faces in navigating the South African market, given the existing economic and political landscape. 

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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