Tesla is winning the war at home, but how will it do across the pond?
2018 was the year Tesla finally pieced it all together, delivering the Model 3 at an impressive rate. Since Telsa had taken so many reservations for its affordable EV, sales quickly skyrocketed and eclipsed the 100,000 unit mark with an entire month to spare in 2018. The Model 3's sales were so impressive, it actually outsold the entire BMW lineup in the month of August.
Clearly, Tesla has had no shortage of success in the United States, though it remains to be seen if this momentum will continue into other markets. According to Automotive News, Telsa has just received permission to sell the Model 3 in Europe, where it will now battle Audi, BMW, and Mercedes on their home turf.
Tesla will deliver the Long Range Battery Model 3, the same version it initially sold the US, starting in February. Delivering the Model 3 to Europe will represent a new challenge for Tesla in what company CEO Elon Musk has called a "very difficult" road ahead. The company has already slashed 7% of its workforce in order to cut costs and ramp up Model 3 production, preparing for increased demand. Europe represents an enormous opportunity for Tesla with Musk acknowledging that "the midsized premium sedan market in Europe is more than twice as big as the same segment in the US.”
European brands are beginning their electric assault with models like the Jaguar I-Pace, Audi e-tron, and Mercedes-Benz EQC, so it will be interesting to see how these cars are impacted by having the more affordable Model 3 as competition. Interestingly, the Model 3 has also stolen customers from mainstream brands. According to Edmunds, the most common trade-ins on the Model 3 are the BMW 3 Series, Nissan Leaf, Honda Accord, Toyota Prius, and Honda Civic. As it has been in the US, we expect the Model 3 to be a sales success when it goes on sale in Europe next month.