Update

Why Tesla Chose Morocco Over South Africa for Its First African Dealership

Tesla opened its first African dealership in Casablanca in February 2026. Here's why Morocco beat South Africa — and what it would take to change that.

April 13, 2026

Tesla has opened its first dealership on the African continent — but it isn’t in South Africa.

The American automaker launched its Casablanca showroom in February 2026, opening pre-orders for the Model 3 sedan and Model Y SUV in Morocco. The move surprised many: Morocco’s car market is less than half the size of South Africa’s, with 235,372 vehicles sold in 2025 compared to 596,818 here. Roughly 40% of South Africans own a private car — 10% more than in Morocco.

So why Morocco?

The short answer: taxes and policy. South Africa makes it expensive to buy an EV. Morocco makes it cheap.

South Africa’s Import Duties Price Tesla Out

South Africa charges a 25% import duty on all foreign-built cars, except those from the UK and EU, which receive an 18% rate under a preferential trade deal. Stack on top of that the ad valorem excise duty, 15% VAT, and a 10% luxury surcharge, and the landed cost of an imported car can balloon dramatically.

All of Tesla‘s right-hand-drive models are built in China — meaning every unit bound for South Africa carries the full 25% hit before any other taxes apply.

Buyers who have privately imported Teslas told TopAuto and MyBroadband that the combined tax burden can effectively triple the retail price relative to the country of origin.

This isn’t a new problem. Tesla appeared on track for a South African launch over a decade ago. It opened local pre-orders for the Model 3 in March 2016, and Elon Musk said on X (then Twitter) that South Africa was one of five African countries set to receive the brand. First deliveries were promised by 2018, then pushed to “probably” by end of 2019. Neither date was met.

When asked about the delay, Musk cited import duties as the core obstacle.

South Africa has since rolled out Tesla’s Powerwall home battery system and Wall Connector chargers — but no cars.

Morocco Cuts Taxes to Attract Tesla

Morocco took the opposite approach.

EVs are exempt from the country’s standard 20% VAT rate, and select models benefit from a zero-duty policy — compared to the standard 10%–17% import tariff on combustion vehicles. Electric and hybrid car owners have also been exempt from Morocco’s annual road tax since 2017. Returning expats can even apply for rebates of up to 90% on EVs purchased abroad.

The result: Tesla’s prices in Morocco land close to what American buyers pay. The rear-wheel-drive Model 3 retails at 389,990 Moroccan Dirhams (approximately R688,524) — not far off the US price of $38,630 (R635,521).

Morocco’s EV push extends beyond consumer incentives. The country has been actively courting EV and battery manufacturers with special industrial zones, corporate tax holidays, and R&D grants. In 2025, Morocco produced over 1 million vehicles — overtaking South Africa’s roughly 550,000 units to become the largest vehicle manufacturer on the continent.

South Africa’s EV Market Lags as Others Pull Ahead

South Africa offers no consumer subsidies for EV purchases. A 150% tax rebate on new-energy vehicle production was introduced, but only after years of delay — and it does nothing to reduce the purchase price for buyers.

With no demand-side incentives and high import costs, most automakers have held back from launching affordable EV models locally. The ones that do arrive are priced well above their intended segments.

Local EV sales are growing slowly as a result, while Morocco and Ethiopia have both recorded significantly higher adoption rates across the continent.

Until South Africa restructures its import duty regime or introduces consumer EV incentives, Tesla’s Casablanca dealership is likely to remain the closest option on the continent for South African buyers considering the brand.

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