EU Market Situation and Outlook

[Car4CivilizedAge]

Positive news from Norway: European lawmakers(EFTA surveillance authority) has approved sales tax exemption also from leasing of EV 's. State and municipal companies are already planning their EV fleets. This is very good news. Expect stronger Tesla fleet sales in Norway!

 

[SteveG3]

At least by one person's report on Reddit, prices going up in EuroZone this week (wrote of receiving an email from Tesla- anyone else get an email?). Looks like good news on margins going forward, suggestive of strength in demand as well. Thanks to "Fanatic" for starting a thread about this outside the investors section.

Tesla to raise prices in Europe : teslamotors

 

[Earlian]

Seams true, third raise since I got my MX reservation and THAT is hard.

When I got the reservation, the Tesla communication where always, single digit percentage higher price then Model S.

Last summer that meant 80k+max 8=88k

Next Monday the same configuration (and its not ALL-in and no P!) will mean: 98k+max9,8= 107.000 €!

That's almost 20.000€ (worst case)more cash to pay on a car, most people wouldn't even consider to buy so expensive.

I know, it is good for tesla, but it will make lot of "normal" people think twice, because they reach a psychological price wall.

Hopefully the X won't take much longer and they have a really good idea, on how to catch European reservation holders, that waited that long time.

I did took it stumbled with my decision, not to buy a (lot cheaper) D in October and it seems, I totally chose the wrong door this time.

Others in Europe with that problem ?

 

[Yggdrasill]

Tesla employees in Norway are confirming that there is a 7-8% price increase that's right around the corner.

This definitely won't do wonders for the sales numbers. A Model S is becoming more and more expensive relative to the competitors that the middle class here would consider.

One good thing however is that it should do wonders for the margins. After the price increase, a Model S will cost 2-3% more here than in the US, so including shipping the margins should be about as good here as in the US.

For me personally, a Model X is looking less and less likely. Initially was considering the Model X equivalent to the 85D, which almost immediately started becoming too expensive, until it was definitely too expensive. Then the 70D launched which was again within budget, and now *it* is very close to being too expensive.

I may have to wait for a Model 3 crossover. Though I am keeping my reservation until I see what the pricing will be.

 

[AustinPowers]

This definitely won't do wonders for the sales numbers. A Model S is becoming more and more expensive relative to the competitors that the middle class here would consider.

This will potentially hit sales numbers in Germany even harder, as price sensitivity is even higher here.

Interestingly, on our company ideas portal, where employees can make suggestions for optimizing all kinds of things, a few days ago a fellow employee suggested converting our company car fleet from its current mixed ICE lineup to an all Tesla Model S lineup.

Unfortunately, the published comments by those who have a say in this focus on "this is far to expensive, our average fleet car price is somewhere in the 40K Euro range. Plus it wouldn't look good with our customers, if our salespeople arrived in such expensive cars, when the head of the customer company only drives a Passat, E-class or 5-series diesel for example".

Still, around 100 fellow employees so far have voted pro Tesla Model S anyway (myself included)

 

[Earlian]

You are both right. Perhaps I can't afford the MX in the end, while the price got to high here in Germany.

The case is, tesla don't need the German market by now, so it will probably stay our problem.

 

[schonelucht]

Tesla employees in Norway are confirming that there is a 7-8% price increase that's right around the corner.

Belgian sales people are saying the same thing and urging prospective buyers to lock in the price by putting down a deposit.

This definitely won't do wonders for the sales numbers. A Model S is becoming more and more expensive relative to the competitors that the middle class here would consider.

In the rest of Europe with less generous benefits, the Tesla isn't a middle class car at all so impact may be a bit more tempered. We'll see soon enough : changes in pricing the coming weeks should start showing up in deliveries around August.

 

[32no]

Tesla raised prices in Europe sometime in the last couple of days. The discount is no longer 10%. In Norway, the discount is about 3%, and in the Netherlands, its about 1.5%.

Current:

 

[schonelucht]

For what it is worth, Tesla NL bought 600 preconfigured cars from HQ at the old price which they will be offering to new buyers over the coming weeks/months. Hopefully they got the OK for that from the US and this isn't a Chine debacle all over again.

 

[Matias]

This will hit sales.

 

[FluxCap]

Tesla raised prices in Europe sometime in the last couple of days. The discount is no longer 10%. In Norway, the discount is about 3%, and in the Netherlands, its about 1.5%.

This is going to be good for bottom line revenues / ASP / EPS numbers in the short term, and is a wise move. Price raises also mean demand remains very strong, as we know.

 

[Bgarret]

Any news on monthly deliveries. I know Tesla is going to disclose quarterly, but the monthly numbers in Europe might be nice for the earnings call.

 

[Krugerrand]

This will hit sales.

It will affect those who are price sensitive/right on the edge of being able to afford the car. It won't affect Tesla's ability to hit 2015 company sales guidance.

 

[FluxCap]

This will hit sales.

It really won't. Tesla would not raise prices if demand for every car they can ship was an issue.

 

[AustinPowers]

It really won't. Tesla would not raise prices if demand for every car they can ship was an issue.

Perhaps we should rephrase: it will certainly hit sales, but only in markets that Tesla currently doesn't seem to need to meet their sales targets.
But someday, only building the cars in Dollar-territory might become quite risky. Especially once Model 3 arrives.

 

[Krugerrand]

But someday, only building the cars in Dollar-territory might become quite risky. Especially once Model 3 arrives.

And we know what Tesla's plans are; factory in Europe and China, so they've already thought of that.

 

[32no]

This will hit sales.

No it won't. If anything, it just pulled sales ahead. There's been rumors and various exchanges with Service Reps that price increases are coming in countries which had unfavorable exchange rate changes. People had plenty of time between then and now to order their car before the price increase. So no, it won't hit overall sales, especially since Tesla Netherlands (thanks Schonelucht) has 600 pre-configured cars at the old price (and I'm sure some of those cars might be shipped to other service centers in Europe).

 

[Yggdrasill]

The price increase wasn't nearly as high as suggested beforehand. A 70D went from 555.200 NOK to 563.200 NOK, or an increase of 1.44%.

I don't think this will affect sales very much here. Of course, we still haven't seen the effects of the previous price increases, which were much more significant, so we'll have to wait and see. Those price increases were before the launch of the 70D, though, which hopefully might balance out the drop in demand for 85/85D/P85D.

 

[Gerardf]

Any news on monthly deliveries. I know Tesla is going to disclose quarterly, but the monthly numbers in Europe might be nice for the earnings call.

I see no figures yet for NL and Belgium. But Sweden already reported :

April 2015 : 75 (2014 was 21)
YTD 2015 : 213 (2014 was 53)

The previous Q1 total I had for Sweden + 75 did add up to more than 213. Looking back the March report now mentions 138 for Q1.

Source : Topplistan april 2015
And for all months : Topplistor per mnad 2015

 

[Matias]

Finland 4/2015 16 Tesla YTD 35, last year 29.

Source http://aut.fi/files/969/Huhtikuu_2015.pdf

Page 5