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EU Market Situation and Outlook

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I was compiling data for European deliveries and expansion/investment in terms of stores, service centers, and superchargers when I came across something interesting. Here's the data:

Tesla europe.png


It seems that some countries are getting disproportionately large investments when compared to the deliveries that those countries receive. Let's put it in graph form:

Tesla Europe 1.png


It seems that Germany and France (and even Austria) are getting much more investment in Europe than they have deliveries. Perhaps Tesla thinks these markets will contribute greatly to European demand in the future, meaning that these markets will be rapidly expanding for Tesla. Another thing to take into account is population size and country size, which could partially explain this disproportionate investment, but I think the theory that these markets will be expanding rapidly in the future still stands.
 
You might also keep in mind that Germany to some degree is a vacation target, but mostly is a very central location that "everyone" has to drive through to get to their target, like France, Italy or Spain. Hence also the reason while France got the big investment is that France is big and has several important vacation targets for Europeans. Not to mention it's on the way to Spain, which also is a vacation target.
Having said that, I guess when germanies SC is built out and some more hightech accessories (active security, active lighting etc. ) there is a big room for growth in Germany.

Cobos
 
It seems that Germany and France (and even Austria) are getting much more investment in Europe than they have deliveries. Perhaps Tesla thinks these markets will contribute greatly to European demand in the future, meaning that these markets will be rapidly expanding for Tesla. Another thing to take into account is population size and country size, which could partially explain this disproportionate investment, but I think the theory that these markets will be expanding rapidly in the future still stands.

Not only is Germany centrally located but with Autobahn speeds SC locations need to be spaced closer together.

On the one hand you can't claim to be comparable to big Mercs and Beemers then on the other hand ask Model S owners to limit their speed to 80 kmh in order to jump from one SC location to the next.

Germany having the biggest population and biggest economy in Europe with the most solar energy production Elon has not lost hope that it will be the third largest market outside of USA and China.

When Elon visited Germany he said he hoped for 300 sales per month in Germany. Tesla is only averaging a quarter of that this year but Tesla is plowing ahead anyway.

And France is between Germany, England(hopefully second biggest European market) and Spain( Europe's number one tourist destination despite France being the worlds number one tourist destination).
 
My personal experience, and I like to drive fast, is that the spacing in Germany is not an issue. On my recent holiday from The Netherlands to Austria I stopped at 3 SC's in Germany, each time recharging a bit more then needed so I could drive "unlimited" speeds.
The reality of the Autobahn is that you can indeed drive some stretches at good speed, but the majority of stretches the traffic is either too busy, roadworks are being done, speed limits around cities etc etc.
It is perfectly possible to drive from SC to SC at a normal speed, without having to resort to hypermiling techniques.
I'm sure that if Tesla can maintain a steady flow of orders from Germany the momentum will pick up some day and we will see a healthy grow in sales there.
There certainly is a lot of interest there for the car, if you like attention just drive through Germany, they will stare at your car like no other ;) (in NL or NO this is far less the case)
 
My take on the German situation is this:

SC need to be spaced at max 250 km (better 200 km) to allow driving at 'normal' autobahn speeds. I was once able to go really fast from Dresden to SC Münchberg (197 km, relatively little traffic). I rolled to the SC with a single digit range. So just flooring it will give you less that 200 km range, or less than an hour of driving if you put it that way. Then charge for 45-60 minutes. SO it rally makes sense to limit your speed to about 160 km/h (100 mph) for extendedd range and less charging time at the SC.

Sales are increasing from quarter to quarter.

Adaptive Cruise Control and other goodies do not appear to me to be dealbreakers. The car as such is so advanced. But sure, they would be nice to have.

Deals have to be struck for corporate fleets. Very few people (like myself) buy their cars themselves. Many cars in this price range are bought by companies for their employees. Get someone to sell Teslas to the DAX30 companies and sales will really pick up. I do not know if this is neccessary as long as Tesla is production restricted. But if you want to sell more, this is a way to grasp it.
 
Get someone to sell Teslas to the DAX30 companies and sales will really pick up. I do not know if this is necessary as long as Tesla is production restricted. But if you want to sell more, this is a way to grasp it.

Tesla just started doing this in Switzerland with Sixt Leasing and not that long ago started business leases in the USA through Tesla Financing.

I am sure this is right around the corner once the new production lines are at full capacity in Fremont and the German leasing company can delivery cars in a timely manner. I am sure DAX30 executives are not ok with waiting 3-5 months for their cars.
 
Exhibition on e - mobility in 63763 Aschaffenburg the upcoming saturday, Jul 26th

Main-Echo - ABS - 24.07.2014 klick left side page 13 Sport and then once again down right

This is another chance missed by Tesla Motors Germany to exhibit for small money in one of the wealthiest cities surrounding Frankfurt.

Tesla even had a spare car down in munich, but Tesla wanted to be paid the expenses from the public office in charge for the exhibition to get the car back and forth.

This is not an commercial event like IAA.

Private - owned Model S on exhibition at the Karlsplatz.
 
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Tesla sales in the Netherlands for July 2014 : 31 (compares with 49 in April '14 and 32 in Oct '13; Jan '14 is not comparable due to legislation changes), 598 cumulative for 2014

Other EV sales for reference (numbers in parentheses are cumulative 2014 sales) :
Nissan Leaf : 43 (275)
BMW i3 : 35 (365)
Renault Zoe : 14 (99)
 
Hm, that's disappointing. But I guess it also has to do with the new markets (Hong Kong, GB..., China) that want some of the produced Model Ss, too... and the factory shutdown for installation of the new production line.

Tesla Model S registrations in Germany for July:

26

Total 2014 so far: 472

EDIT:

BMW i3 - 211 (2014 to date: 1589)
BMW i8 - 54 (2014 to date: 109)
Nissan Leaf - 85 (2014 to date: 465)

....
Mercedes S-Class - 914 (2014 to date: 5403 ...)

Source: Kraftfahrt-Bundesamt - Homepage - Neuzulassungen von Personenkraftwagen im JuliÂ*2014 nach Segmenten und Modellreihen (FZÂ*11)
 
Hm, that's disappointing. But I guess it also has to do with the new markets (Hong Kong, GB..., China) that want some of the produced Model Ss, too... and the factory shutdown for installation of the new production line.
The factory shutdown could be used as excuse for low numbers in September or October in Germany.
I continue to think that people vastly over-estimate the demand for the Model S in Germany. Just how much of a home brand market this is becomes clear when you compare i8 and Model S. 2:1 ratio. S-Class : Model S? 35:1
 
The factory shutdown could be used as excuse for low numbers in September or October in Germany.
I continue to think that people vastly over-estimate the demand for the Model S in Germany. Just how much of a home brand market this is becomes clear when you compare i8 and Model S. 2:1 ratio. S-Class : Model S? 35:1

I think you are right that the home brand effect is big in Germany, but I'm guessing Model S usually not being available as company car, charging network not really covering the north of Germany and the car being "feature light" does affect sales as well. Within a year most of those should be dealt with and I'm hoping it will outsell the i8 if not the S-class in Germany. The other way around it does outsell the S-class in California :)

Cobos
 
The factory shutdown could be used as excuse for low numbers in September or October in Germany.
I continue to think that people vastly over-estimate the demand for the Model S in Germany. Just how much of a home brand market this is becomes clear when you compare i8 and Model S. 2:1 ratio. S-Class : Model S? 35:1

+1

The biggest problem is that most German companies (in any sector), and of course all public administration entities / politicians / ministries, etc. , tend to have either formal or informal long-term contracts (or at least implicit commitments) with/to German auto manufacturers (and/or auto manufacturers producing cars in Germany, such as Ford), in many instances for huge fleets. It would require a lot of lobbying and marketing efforts from Tesla to get into these spheres.
 
What's really interesting is that Tesla produces 1000-1500 more vehicles every quarter than they deliver. Tesla claims those vehicles go toward 'filling the pipeline' but doesn't give any specifics beyond that. I am really starting to wonder where that pipeline exactly is. It sure as hell isn't piping stuff towards Europe where we have this consistent fall in deliveries the month after quarter ending 3-4 times in a row now. If it isn't Europe, and it isn't America (where delivery transport takes 2 weeks max), that just leaves China. But I find it hard to believe that there are 5000 cars in transit towards China. Especially because production of the RHD hasn't been going on all that long and neither has Tesla import in China been going on that long while the overproduction is going on right from the very first quarter the factory was open (minus 1 or 2 exceptions). Finally, Tesla also needs surplus cars for marketing and service : about 125 stores and 100 service centers are open worldwide. At 3 cars/shop and 5 cars/service center that gives us 1000 cars max. Possible answers and more questions

  • cars that are produced but fail quality control are counted towards 'production' twice (once when they fail QA and the second time when they are salvaged for parts, reassembled and subsequently delivered)?
  • loaners sold after a 3/6 month rotation at a shop/service center aren't counted towards 'deliveries'?
  • service centers/shops need much more cars on standby than 5?
  • there are really 5000 cars on a boat towards China
Is there any other explanation that I am missing?

Q3 is probably going to be a very weak quarter for European deliveries, possibly weaker still than last quarter.
 
Sweden July '14 registrations: 17 (one of them is mine)

More complete EV (incl Plug-in hybrids) list:
MITSUBISHI OUTLANDER PHEV199
NISSAN LEAF62
VW E-UP!35
VOLVO V60 PHEV27
RENAULT ZOE25
TESLA MODEL S17
BMW I3 (REX)10
BMW I3 (BEV)8
TOYOTA PRIUS PLUG-IN8
SAAB 9-3 (EV) NEVS4
Models not included have zero registrations.
 
Interesting. So a MITSUBISHI sells better in Sweden then a Volvo?
The Outlander is quite attractively priced, so it's also selling quite well here. The Outlander costs 440,800k NOK vs 606,800 NOK for the Volvo. At 606,800 NOK, it should also be mentioned that a well specced 85 kWh Model S is cheaper, because the incentives apply to electric cars and not hybrids. I believe that isn't the case in Sweden, so the Volvo shouldn't be completely sidelined by the Model S there.

July, Norway
Mitsubishi Outlander: 106
Volvo V60 PHEV: 5
Toyota Prius Plug-in: 2

And yes, some people have loyalty to brand and nationality. But most people just buy whatever they think is the best car for their use.
 
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