Tesla had another record month and quarter of deliveries in the UK, thanks to Model 3, which is quickly becoming a best-selling car in the market.
Tesla’s sales of Model S and Model X vehicles grew steadily in the UK, but they peaked in 2017, with 4,756 units based on registration data.
Last year, Tesla delivered only 3,372 electric vehicles in the country, but it was enough to make it Tesla’s third-biggest market in Europe.
Tesla launched the Model 3 in the market in May and started deliveries in June.
The ramp-up has been slow over the first few months, but Tesla delivered more than 2,000 Model 3 vehicles in August, and it was enough for the Model 3 to become the third best-selling car in the UK in August (via the Society of Motor Manufacturers and Traders (SMMT).
Now the registration data is out for September, and Tesla delivered even more vehicles: 3,459 units, including 2,864 Model 3 vehicles.
It helped the electric car market rise to 2.2% of the overall car market in the UK.
Diesel car sales dropped 20% during the period, and gasoline-powered cars increased by 4.5%.
It brings Tesla’s delivery total for the quarter to 6,244 vehicles, including 5,385 Model 3 vehicles.
In comparison, Tesla delivered more vehicles in the UK during the last three months than it did throughout the whole of 2018.
In the UK, the Model 3 starts at just under £39,000 after the UK’s £3,500 electric car grant.
It’s the first market to get the right-hand-drive version of the Model 3, but Tesla started deliveries in New Zealand and Australia last month.
Supply of right-hand-drive Model 3 vehicles was limited, and it is expected that Tesla could have delivered more cars in the UK with bigger production allocations.
I keep hearing good things about the Model 3 introduction in the UK. They are really liking the car over there.
To be fair, Tesla has been working with a big backlog of reservations that it has been accumulating since 2016, but there are also other factors at play.
The car is offered for a somewhat reasonable price with the plug-in grant, but if you can register it as a company vehicle, you pay no benefit-in-kind (BIK) tax for the first year and a greatly reduced rate for the next two years.
The incentive can be worth a lot of money.
With more people taking advantage of the incentive and more Model 3 vehicles being delivered, generating more word of mouth, I think the fourth quarter is also going to be impressive.
After completing a full quarter of deliveries, Tesla might have a better idea of the volume in the UK and could adjust its right-hand-drive Model 3 production.
On the other hand, there’s a lot of uncertainty with the potential of a no-deal Brexit. Some people might find it difficult to commit to a large purchase like a new car with all the uncertainty.
It’s going to be an interesting quarter.
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