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A look at Tesla quality control inside of Giga Berlin. (Source: Tesla)

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Tesla’s Targeting Huge Sales Push in Germany With Giga Berlin

With Tesla’s Gigafactory Berlin now producing electric vehicles within Germany, the automaker is looking to significantly increase sales. While it’s currently producing and selling far fewer units than legacy automakers in the country, Tesla is hoping that will change in the months to come.

Tesla is aiming for a substantial sales push in Germany through the end of this year, as German publication Automobilwoche reported in September (via Barron’s). The report held that Tesla was looking to double its sales in Germany, which would effectively help the automaker overtake Toyota there.

Germany is Europe’s largest economy, and with auto giants such as Volkswagen, Mercedes-Benz, BMW, and Audi based in the country, it’s not exactly fertile ground for small foreign auto companies to take off. Still, Tesla isn’t exactly small these days, with a market cap that thwarts most of the auto industry as a whole, and a new factory in the country could be set to help with sales.

Tesla sold nearly 25,000 vehicles in Germany between January and August, representing a boost of about 37 percent year over year. Still, Tesla only has a 1.5-percent market share in the country’s overall auto market, with a roughly 16.5-percent market share in the battery-electric vehicle sector.

In the U.S., Tesla’s market share for all passenger vehicle sales is roughly 6 percent in 2022. Tesla accounts for about 66 percent market share across all BEVs.

To double its sales in Germany, then, Tesla would need to hit 50,000 units, which would be likely to overtake Toyota’s sales numbers. If it can reach around 80,000 sales in Germany in 2022 (a lofty increase of another 55,000 units this year), then it could have a shot at other foreign automakers, including Hyundai and Ford.

The move would be a boost of 150 percent from total unit sales in the last four months of the year.

Tesla’s Gigafactory in Grünheide is likely to help with the goal, potentially unlocking more affordable domestic prices and boosting demand in the long run. Still, the goal is ambitious and Tesla remains a luxury brand in Germany, with the Model Y costing about €70,000 ($68,652) compared to the average car price of €38,000 ($37,268), according to Statista.

Between increased supply from its Giga Berlin and the potential for lower pricing, some think Tesla could reach these ambitions, despite their loftiness. Whether Tesla succeeds or fails at the goal, however, the results could signal to investors how well the company performs in a mature and saturated auto market — an increasingly relevant subject amidst growing EV demand around the world.

Originally published by EVANNEX. By Peter McGuthrie

 

 
 
 
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