BUSINESS

Tesla Opens Large Service Centre In Montreal

12/10/2014 12:27 EST | Updated 02/09/2015 05:59 EST
JERRY LAMPEN via Getty Images
Elon Musk, co-founder and CEO of American electric vehicle manufacturer Tesla Motors, poses with a Tesla during a visit to Amsterdam on January 31, 2014. The European Tesla Service is based in Tilburg and the European headquarters is in Amsterdam. AFP PHOTO / ANP/ JERRY LAMPEN --NETHERLANDS OUT-- (Photo credit should read JERRY LAMPEN/AFP/Getty Images)
Tesla has opened its largest North American dealership and service centre to date, in Montreal.

The California-based maker of electric cars has dealerships in Toronto, Montreal and Vancouver, and charging stations in Quebec City, Cornwall, Ont., and in the Toronto and Vancouver areas.

The 45,000-square-foot Montreal location, formerly a Chrysler dealership, replaces a smaller location that was Tesla's entry to the Quebec market.

The Montreal dealership sells the Model S, a luxury sedan with a range of more than 400 kilometres and price tag in excess of $85,000.

Jérôme Guillen, Tesla’s vice-president of sales and service, says the electric car can take advantage of one of Quebec’s most abundant resources, its hydro.

“We are delighted because the mission of Tesla is to accelerate the transition to sustainable modes of transportation,” he said in an interview with Radio-Canada.

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Tesla Model S Performance Plus


Tesla technology is continually improving and ultimately could result in a self-driving car, Guillen said.

The company formed by Elon Musk is expanding rapidly, with a new lithium battery plant being built in Nevada that is expected to improve the range of the cars.

It is attempting to shake off the impact of a video earlier this year that showed a Tesla on fire on the highway.

The Montreal service centre is unlikely to remain its largest centre for long, as it expands its network of services across North America.

But Tesla is unlikely to have mass appeal until it creates a cheaper mass market model, experts say.

“Electric vehicles at this time still have three barriers to overcome before they really appeal to everyone: the range is too small in general, the recharge time is very long and there is always the question of price,” said Benoit Charette, editor in chief of L'Annuel de l'automobile.

Tesla is believed to have sold no more than about 300 vehicles in Quebec, far fewer than cheaper hybrid vehicle the Chevrolet Volt, which costs only about $36,000.

The Tesla remains a niche product, said business professor Yan Cimon of Laval University.

“They are not within the reach of all budgets and there are an increase number of alternative vehicles which can reduce fuel consumption,” he said.