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Tesla is DOMINATING Europe! A look into how Tesla is becoming the European market leader
Tesla is set to become the market leader in Europe with Giga Berlin opening up in Q1 2022, Model 3 being the EU's best selling car and much more covered in this article!
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I keep hearing the words, “the competition is coming, the competition is coming.” So can you then help me understand what is going on in Europe? Tesla's lead continues to grow whilst everyone is sitting at home saying that Tesla will not succeed in Europe? I mean you name a country and the chances are Tesla is the best selling B.E.V in that country.
Tesla’s lead in Western Europe
In Norway, Switzerland and the United Kingdom Tesla has become the best selling vehicle brand. Now you might say, ‘well yes but there are barely any electric vehicles sold compared to ICE vehicles.’ You would be wrong, the Global share of B.E.V’s is rapidly expanding,
In Europe they now account for roughly 20% of the total car sold. Whilst in places like Norway the new care sales are nearly 90% entirely electric vehicles
So, what the f**k is going on in Europe? Let me explain.
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Why Tesla is leading in the UK, Norway and Switzerland
The turning point was in the third quarter where Tesla’s deliveries rose to 45,000 units higher than its previous record number of deliveries. Tesla was now shipping thousands of vehicles from their Shanghai factory to Europe. As a result Tesla had grown their BEV market share to 15% thanks to the third quarter 2021 push. In the 3 fully completed quarters so far Tesla has been forcing its way into the European market, as you can see here (below) in Germany. Its competitors are either stagnating or declining whilst Tesla is capturing more of the entire automotive market as the world transitions to electric vehicles.
Tesla is now set to surpass Volvo’s market share early in 2022 as they only trail volvo by 2,000 units registered in Q3 as in September alone Tesla delivered twice as many vehicles as Volvo did across Western Europe. Tesla delivered 33,900 whilst Volvo only managed 16,793 vehicles. Tesla is slowly on an exponential curve growing their deliveries as there are now nearly 500,000 Tesla’s roaming around Europe.
If we look at Norway, we can see truly the growth that Tesla is about to experience is going to be unprecedented. Tesla has become the best selling vehicle of any sort in Norway for 2021, The model 3 came in at first and the model Y came in at fourth place. Whilst incredibly 80% of the top 10 selling vehicles where all electric cars. In 2021 64.5% of all vehicles purchased where electric in Norway, leading the world but as you can see this growth is exponential and the world will follow soon. I Norway electric car sales have nearly doubled in two years.
EV registrations per year in Norway
Ok but that is just one example you say? Well lets look at Switzerland. Oh yeah, the Model #3 was only the number one selling vehicle in 2021. Note that this includes Ice VEHICLES!
And as a final example, this graph for the United Kingdom should be self explanatory.
Now that you have a better understanding of simply how dominant Tesla has been in these countries, lets zoom out and take a look at Europe and what is about to happen..
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Tesla in Europe and Giga Factory Berlin
Now that we have looked at the current situation, let's take something else into account, every Tesla sold in Europe has been either imported from China or the United States.
In Q1 2022 Tesla is expected to open Giga Berlin, which is going to have an end capacity of more than 1 million vehicles. Which for context would be about ⅓ of the total number of cars sold in Germany per year. When Giga Berlin comes online this year and starts producing around 100-150,000 vehicles Tesla will see huge growth in its market share. Similarly, European made Tesla’s will see a much higher profit margin due to the fact that they no longer have to be imported and because Giga Berlin will be a state of the art facility.
Due to the lower import costs Tesla’s can also become cheaper, although I doubt Tesla will lower prices greatly due to the insane demand they are facing. But the capacity of Berlin is not to be doubted.
Elon Musk has previously said that “ I think, hopefully, Giga Berlin — this factory here — can serve as inspiration to people in Germany and throughout for excitement about the future. I mean, we gotta be excited about the future.”
The expectation is that Giga Berlin will produce around 100-250k vehicles in 2022, ramping up to 1 million at peak capacity.
Just look (see below) at how fast Giga Shanghai has grown its production, we can expect Tesla to have learnt much from Shanghai and will implement these changes to Berlin to help scale production at a similar rate here in Europe.
I cannot explain how excited I am for Giga Berlin to open up in January. I think it's going to be a huge turning point for the conversation surrounding Tesla and its dominance in Europe.
As for how the stock will react to these updates, who knows! I’ll be keeping you up to date with my 2 free newsletters every week, stay on the lookout for my next newsletter coming in a few days, so please support my work!
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