In a minor way, that helps deal with two big problems for the People's Republic: smog from cars and the need of its wealthy to spend more money on luxury products.
Tesla's Model S with an 85 kWh battery pack will cost roughly $121,000 to buyers in China – about $40,000 more than it does in the United States. The cars are expected to hit Chinese roads in March.
(Read more: Tesla unveils price of Model S in China)
According to CNBC contributor Gina Sanchez, founder of Chantico Global, that's still a bargain for China's upper class.
"Obviously, they're pricing very aggressively," says Sanchez. "Compared to other luxury vehicles like the Mercedes S [and] other similar cars, this looks inexpensive…. There have been preorders in China [with] $40,000 deposits for this Model S before people even knew what the price was. So, there's clearly a demand out there. And, I think that this could be incredibly beneficial to Tesla's continued growth. "
While drivers in China may be ready to step on the accelerator, CNBC contributor Andrew Busch, editor and publisher of The Busch Update, thinks investors may want to be careful about Tesla's stock going in reverse.
(See: CNBC's Autos coverage)
According to Busch's charts, shares of Tesla have been trading in an uptrend channel since November. That channel broke through an uptrend in January when the price crossed the $157 threshold.
Busch notes that the upside of the trend channel was tested at around $180. He believes that price will continue to act as resistance.
"I wouldn't mind trying to sell it here," says Busch, "leaving a stop on a close right above $180 and looking for $35 on the downside at about $145 because that's the width of the channel – about $35."
To see the rest of the discussion on Tesla by Sanchez on the fundamentals and Busch on the technicals, watch the video above.
More from Talking Numbers: