Tesla Motors Inc Expects Europe, Asia Sales To Beat North America

Tesla stockBlomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) plans to install 30 new service centers and stores in Europe, expecting a rise in sales in the region, and in Asia, as well. In a statement given at the Geneva auto show, the automaker said it expects the combined sales from Europe and Asia to be twice that of in North America in 2014.

Gigafactory to boost Tesla Motors Inc (TSLA) market share

Tesla Motors Inc (NASDAQ:TSLA), which plans to build the world’s largest lithium-ion battery factory, revealed intentions to introduce right-hand-drive versions of Model S, in the U.K. The company also plans to introduce leasing and financing programs for European customers.

According to Ed Kim, vice president of industry analysis for consultant AutoPacific Inc, “Growing international sales is a crucial part of the plan for the Tesla, but it won’t be easy.” However, the analyst notes that many of the potential customers in China and Europe may not be able to enjoy the same level of charging infrastructure as available to North American users.

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk, who expects a 55% rise in global auto sales this year, announced plans to construct a so-called gigafactory in the U.S costing around $5 billion. According to Morgan Stanley analyst, Adam Jonas, the new facility would allow Tesla to produce cheaper versions of its vehicles helping it to double its global market share to around 1%.

China an important market

In 2013, Tesla Motors Inc (NASDAQ:TSLA) sold around 22,500 battery-powered vehicles. Tesla’s Model S, which is priced around $71,000 in the U.S., is available in many of the European countries including Belgium, Denmark, Germany and Switzerland. Musk, the co-founder and biggest shareholder of Tesla, has been talking about entering China, and in an interview earlier, revealed plans to travel the country in late March to promote the brand.

In January, Tesla Motors Inc (NASDAQ:TSLA) revealed the price of its Model S sedan in China, which surprised many. The Model S is priced at 734,000 yuan or $121,000 in Beijing, which is only $40,000 more than the price in U.S. The difference in prices is primarily due to the unavoidable charges like import duties, taxes and transportation charges. Tesla Motors’ price was much lower than the analyst expectation, who were anticipating the company to target the wealthiest customers in China.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

1 Comment on "Tesla Motors Inc Expects Europe, Asia Sales To Beat North America"

  1. Tesla should make safety a top priority instead of expansion.

    Tesla Motors has safety hazards. Nearly all Teslas have been recalled, for defective charge connectors that are a fire hazard. Tesla Motors (Elon Musk) promised that replacement adapters with thermal fuses would be mailed out within two weeks, nearly 2 months later customers have not received replacement adapters under the recall. The defective Tesla charge adapters have been overheating, melting and burning for about a year may be more. Yet Tesla Motors has not resolved the problem that is a fire hazard. There was a Tesla related fire in orange county California that the fire department determined that the Tesla charger connection was a possible source of the fire.

    Tesla Motors issued an over the air software update and touted it a “fix”. The “fix” did not stop the Tesla charge connectors from overheating, melting and burning. Allegedly the software has a glitch that under some circumstances current is dangerously increased beyond user settings when a fault is detected. Allegedly the so-called “fix” has a dangerous glitch that is a fire hazard.

    Nearly 30,000 Teslas are under recall for defective charge adapters that can overheat, melt and burn. Several people have been injured by overheating, melting and burning charge connections. Allegedly almost 900 Tesla charge adapters have been returned or reported faulty.

    I think it was foolish for Tesla to locate traction batteries so close to the ground and so lightly armored. Lithium batteries are more likely to burn and/or explode when punctured, then gasoline tanks.

    Customers of Nissan Leafs, Chevy Volts & Toyotas Rav4EV allegedly haven’t had any fires from road debris or vehicle accidents; yet Tesla has recently had three. Statistically Tesla infinitely more likely to catch on fire or explode after an accident or only running over road debris?

    The latest significant Tesla fire in the news was in a Toronto garage fire. Allegedly the fire department said the source of the fire was the Tesla. It seemingly was not charging at the time. The charger and the traction battery supposedly are not a source. Reportedly Tesla sent seven people to investigate the fire. So far the fire department and Tesla hasn’t.

    Some Tesla owners are reporting that friction brakes are sometimes ineffective in wet conditions. Reportedly sometimes friction brakes are not effective for several seconds. Reportedly there’s been at least one accident attributed to ineffective Tesla brakes.

    Despite the Tesla proving to be unsafe in the real world, Tesla fan boys/shills tout ratings claiming that Tesla is safe.

    Tesla fan boys/shills are haters that are often vindictive against those that speak critical truths and incriminating facts of Tesla. Tesla fan boys/shills often slander, threaten, harass and censor those that speak critical truths and incriminating facts of Tesla. Tesla fan boys/shills often lie. They spread hate and FUD.

    The media needs to stop being in bed with Tesla. Tesla needs to stop getting favorable treatment. The media needs to hold Tesla accountable. Tesla needs to be proactive and make safety a top priority.

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