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This week, Tesla won approval from Dutch auto regulators to sell the Tesla Model 3 to the European market which many hope will begin to turn things around for Elon Musk’s electric vehicle manufacturer after a string of bad news for the company.
Tesla Model 3’s Are Coming to Europe
According to MarketWatch, the Netherlands Vehicle Authority (NVA) approved the sales of Tesla Model 3’s to the European Market after Tesla satisfied regulators that the Model 3 met the requirements for cars in the European Union. The NVA has governing regulatory authority over cars sold in the European Union as a whole.
Tesla had been expecting approval and has been getting ready by opening pre-orders for European customers last month. Electrek reported last week that Tesla has already begun shipping Model 3’s overseas.
A Good Time For Good News
In recent weeks, Tesla has been dogged by negative press and company restructuring that has spooked some investors.
Recently announcing that they would be laying off 7% of its workforce as a cost control measure has not reassured investors who have been waiting for Tesla to break out in a big way. Layoffs are not usually a healthy sign for a company.
This comes after months of controversial behavior by Tesla head Elon Musk—including smoking marijuana on a live podcast with Joe Rogan—has given investors concerns about the leadership at the top of the company.
Production challenges have come to define the Model 3, fairly or unfairly, so add all of this together and Tesla has had a very rough year, all things considered.
High Expectations for Tesla Sales in European Market
Recently, plug-in electric vehicle sales in Europe have soared 24% over 2018. With the phase-out of some hybrid vehicles and more options for a customer base that has long suffered under high gas prices, the surge in electric vehicles is to be expected and shouldn’t be overstated, but Tesla has high expectations for the European market.
Already, Tesla expects to sell 100,000 Model 3’s in Europe this year alone. Pre-orders have been high since Tesla began taking them last month and they expect to ship 3,000 Model 3’s to Europe every week through February.
Analysts are predicting that Tesla may break with the trend of other automakers who are anticipating a rough 2019. Jeffries analyst Philippe Houchois says that “Tesla is one of the few [manufacturers] likely to grow earnings in 2019-20.”
Morgan Stanley’s Adam Jonas adds “[Tesla] sees Europe as a very significant market opportunity given the premium market is twice the size of the U.S. one. [Tesla] believes consumer awareness in Europe has significant headroom to improve and sees Germany as the most likely location for a local production facility,”