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Tesla and Hong Kong: Once ideal companions for a city of contrasts
Luxury automobile owners in Hong Kong have enthusiastically embraced the Tesla brand over the past three years. In large part, that’s because Tesla vehicles were not part of the pool of new car purchases that incurred a tax often equal to or exceeding a car’s full sticker price. Tesla had benefited from a nearly twenty year old exemption from this tax as part of the electric vehicle category.
However, the allure of a Tesla as a luxury car with great value and zero emissions may be fading for Tesla consumers.
During a speech about the annual budget for 2017, financial secretary Paul Chan announced that the government will lift a long-standing waiver for electric cars on new vehicle registration taxes. It will be replaced by a maximum deduction that is equivalent to about $12,500 U.S. As there had been so few electric car choices in the Hong Kong market, the original heavy tax on new private car purchases, which had been imposed as a measure to mitigate emissions and reduce traffic, really didn’t amount to much lost tax revenue for the government in its early years.
That is, until Tesla came to town. Car buyers soon found that it could purchase an automobile with the panache of a Mercedes but spend about half the amount. Tesla owners would also have the added benefit of feeling better about their contributions to a city that suffers from heavy air pollution.
Hong Kong’s love for Tesla
Hong Kong is a fascinating place. Calm and orderly crowds. Ample green spaces interspersed between and on top a vertical city. Open land just on the city outskirts. An area that feels like one giant interconnected shopping mall with a density of luxury brand stores. Three Tiffany’s Flagship stores. Eight Hermès shops. Thirteen Armani stores and the Armani Nightclub. In Hong Kong, the new and contemporary complement the ancient and traditional: temples beside skyscrapers, luxury shops flanking Chinese pharmacies, double-decker trams and mini-buses puttering alongside Teslas.
The Tesla brand has fit nicely into the Hong Kong cultural melting pot of neon signs and urban landscape. With networking as an integral part of life and thirty-somethings working and playing hard in a hedonistic lifestyle, Tesla arrived in Hong Kong at the right time. A top tax bracket on income set at 17.5% didn’t hurt sales, either.
Electric vehicle (EV) registrations in Hong Kong catapulted in the last few years. That affection for EVs may be coming to an end now that the government is revising the regulations that inspired their popularity. The new legislation will alter a Tesla Model S 60 with a sticker price of price of $570,000 HK ($73,000 USD) to a cost total of $925,500 HK ($120,000 USD). That means there would be little or no price advantage to purchase a Tesla over a Mercedes. It remains to be seen whether Tesla will still have appeal due to its now-established strong brand, its inherent zero petrol costs, and its ability to contribute to lower pollution levels.
A Tesla spokesperson says that the company is “disappointed” with the government’s new measure:
“Over the past few years, the impressive growth in all kinds of electric vehicles on Hong Kong’s roads has helped create a cleaner, more sustainable city without increasing congestion as almost all our new owners are replacing a particularly high-polluting fossil fuel vehicle. [The action] threatens to move Hong Kong backwards. We will continue to support our owner community and will work with all our current order holders to ensure the delivery of their vehicles with full FRT exemption.”
Here is the cost breakout for Hong Kong luxury car purchases under the new measures.
Image courtesy of Quartz
Elon Musk got a brash response from Ryanair CEO Michael O’Leary, who said in a press conference on Wednesday afternoon that the Tesla frontman’s criticism of the airline not equipping Starlink has increased bookings for the next few months.
The two have had a continuing feud over the past several weeks after Musk criticized the airline for not using Starlink for its flights, which would enable fast, free, and reliable Wi-Fi on its aircraft.
Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes
Musk said earlier this week that he was entertaining the idea of purchasing Ryanair and putting someone named Ryan in charge, which would oust O’Leary from his position.
However, the barbs continued today, as O’Leary held a press conference, aiming to dispel any beliefs about Starlink and its use case for Ryanair flights, which are typically short in length.
O’Leary said in the press conference today:
“The Starlink people believe that 90% of our passengers would happily pay for wifi access. Our experience tells us less than 10% would pay; He (Elon) called me a retar*ed twat. He would have to join the back of a very, very long queue of people that already think I’m a retar*ed twat, including my four teenage children.”
He then went on to say that, due to Musk’s publicity, bookings for Ryanair flights have increased over the past few days, up 2 to 3 percent:
“But we do want to thank him for the wonderful boost in publicity. Our bookings are up 2-3% in the last few days. So thank you to Mr. Musk, but he’s wrong on the fuel drag. Non-European citizens cannot own a majority of European airlines, but if he wants to invest in Ryanair, we think it would be a very good investment.”
O’Leary didn’t end there, as he called Musk’s social media platform X a “cesspit,” and said he has no concern over becoming a member of it. However, Ryanair has been very active on X for several years, gaining notoriety for being comical and lighthearted.
🚨 Ryanair CEO’s comments on X and Starlink today at the planned presser.
Strange comments here, it just feels like it’s time to end all this crap https://t.co/NYeG95bM82
— TESLARATI (@Teslarati) January 21, 2026
The public spat between the two has definitely benefited Ryanair, and many are calling for it to end, especially those who support Musk, as they see it as a distraction.
Nevertheless, it is likely going to end with no real movement either way, and is more than likely just a bit of hilarity between the two parties that will end in the coming days.
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Tesla CEO Elon Musk outlines expectations for Cybercab production
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.
Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.
Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised
This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.
However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.
With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.
With the important caveat that initial production is always very slow and follows an S-curve.
The speed of the production ramp is inversely proportionate to how many new parts and steps there are.
For Cybercab and Optimus, almost everything is new, so the early production…
— Elon Musk (@elonmusk) January 20, 2026
The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.
Musk said back in October 2024:
“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”
When April comes, we will find out exactly how things will move forward with Cybercab production.
Tesla has revealed an awesome Model 3 and Model Y incentive to help consumers make the jump to one of its affordable mass-market vehicles, but it’s ending soon.
Tesla is offering one free upgrade on eligible inventory of the Model 3 and Model Y until February 2.
This would help buyers receive the most expensive paid option on the vehicle at no additional cost, meaning white interior or a more premium paint option will be free of charge if you take delivery on or before February 2.
Tesla states on its website for the offer:
“Only for limited inventory while supplies last. Price displayed on inventory listings already deducts the cost of the free option.”
Tesla says its one free upgrade offer on eligible U.S. inventory for the Model 3 and Model Y ends February 2.
With this incentive, buyers receive the most expensive paid option on the vehicle at no additional cost (up to $2k in savings). pic.twitter.com/IhoiURrsDI
— Sawyer Merritt (@SawyerMerritt) January 21, 2026
This latest incentive is just another advantage Tesla has by selling its vehicles directly and not using some sort of dealership model that relies on approvals from higher-ups. It is important to note that these programs are offered to help stimulate demand and push vehicles into customers’ hands.
It is not the only incentive Tesla is currently offering, either. In fact, there is a much larger incentive program that Tesla is working on, and it has to do with Full Self-Driving transfers, which could result in even more sales for the company through Q1.
Tesla is ending its FSD Transfer program on March 31, as it plans to transition to a Subscription-only basis with the self-driving suite for anyone who has not already purchased it outright.
This could help drive some on-the-fence buyers to new vehicles, but it remains to be seen. Given the timing of the program’s demise, it appears Tesla is hoping to use it to add additional sales and bolster a strong Q1 2026.
Interior and exterior paint colors can add up to $2,000 if you choose the most premium Ultra Red body color, or an additional $1,000 for the Black and White interior option. The discount, while small, could help get someone their preferred design configuration, instead of settling for something that is not quite what they want.
Elon Musk gets brash response from Ryanair CEO, who thanks him for booking increase
Tesla CEO Elon Musk outlines expectations for Cybercab production
