Tesla Motors Inc Success Hurting Its Image In Denmark

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Tesla has become the victim of its own success in Denmark. Its business surged to an all-time high there after the European nation declared that it was phasing out the tax cut for electric vehicles before the end of 2015. Thanks to this sales surge, customers are now furious with the two- to three-month wait for service, according to Electrek.

Sales surge hurting Tesla

In Denmark, the EV firm delivered about the same number of cars in the last three months of 2015 as it did after the launch of the Model S in 2013. To benefit from the tax cut, buyers hurried to buy a new Tesla to have it delivered before the completion of the year. But as was expected, Tesla’s sales in Denmark almost vanished in 2016, the report says.

Presently, with its constrained service presence in the country, Tesla is experiencing issues regarding the service of all those vehicles. There are just two service centers in Denmark at present, which is not enough to meet the requirements of 3,000 vehicles. There were just 1,000 vehicles a few months ago, but now, the number has tripled, leading to a wait of two to three months in servicing. This has upset buyers and gotten Tesla bad press, Electrek notes.

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Since taxes have been reinstated, leading to a drastic fall in sales, the U.S. firm is not interested in investing in service centers anymore as it is expecting not much growth in Denmark in the near future. Though the Model X has been somewhat in demand in the country, the company expects it to cool down soon. The EV firm does not expect any significant amount of sales there until the Model 3 is released, the report says.

Working to up capacity

Some of the owners have reportedly made their way to Germany for servicing of their cars. Though the majority of owners say they are happy with the vehicle, this will definitely tarnish Tesla’s image in Denmark. The company is making efforts to improve the situation, but it made clear that it won’t make any investment into opening a new store. However, it is working on doubling the capacity at the two current locations in Aarhus and Copenhagen, said a representative.

In its home country, the EV firm working hard to grow its presence. The Elon Musk-led company intends to extend its retail footprint, and as part of this, it will be opening its first store in San Francisco on Friday. Spread over a huge area of 65,000 square-feet, the store is situated on the corner of Van Ness Avenue and O’Farrell Street.

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