During a recent presentation at the University of Nevada, Reno, Tesla CTO JB Straubel mentioned that the company is now selling more cars in Europe than in North America. The company rarely reveals information about its sales by segment and it was the first official confirmation that European markets now outperform the U.S. in demand for Tesla’s Model S.
We looked at Tesla’s growth in their main European markets to explain this shift in demand for the company. According to registration data, Tesla has seen a ~136% increase in sales in Europe during the third quarter of the year versus the same period in 2014.
Tesla has seen the biggest increase in Switzerland from July through September, where the Model S outsells all competitors in the same category. During the fourth quarter in 2014, the country saw an important increase in Model S deliveries and the company will have to repeat similar growth this year in order to achieve their 50,000 to 55,000 worldwide delivery guidance for 2015.The company appointed its head of sales in Switzerland, Jochen Rudat, to lead Tesla’s team in Germany. It’s too soon to say if the manager will be able to replicate in Germany the success he experienced in Switzerland, but he will have an important sales increase to deliver during the fourth quarter in both markets:
Switzerland and Germany will be important markets to watch for Tesla in the last months of the year, but also Denmark, which could be a wild card for the company in the fourth quarter since the country confirmed the phasing out of its EV incentives. Prospective buyers could have jumped on the opportunity to buy a Model S before the significant tax increase take place.
Tesla’s sales are an important metric for the short and mid-term future of electric vehicles. Like any other industry, the automotive industry is driven by profit-making. If an automaker solely manufacturing electric vehicles, like Tesla, can show growing sales while maintaining favorable profit margins, there is no better motivator for the incumbents to accelerate their electric vehicle programs.
Other posts based on registration data: