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Tesla Motors Inc (TSLA) Drives Strongly Into Germany

Tesla Motors Inc NASDAQ:TSLA

Tesla Motors Inc has been given the chance to advance itself in Germany, one of the world’s largest car makers. While German automaker Volkswagen has dented its own reputation, CEO Elon Musk took the chance to further the Tesla brand within the country.

Tesla Motors Inc NextEV Challenge

It is reported that the EV market’s top spot will soon no longer be held uncontested by Tesla Motors.Bigger and more formidable car entities are taking a serious interest in the market. Volkswagen recently unveiled two concept electric vehicles for its premium luxury brands, Porsche and Audi.

Tesla Motors Has its Eye on Germany

Musk said that Germany stands as the second most lucrative market for Tesla Motors, despite sales indications.The firm’s top interest still remains the United States. The announcement was made in the country’s Wirtschaft Fur Morgen event.

Germany is teaming with firms which could pose a threat to Tesla’s  reign over the EV market. The country is home to many rivals in the luxury car space.

An optimistic Elon Musk predicted that the end of 2014 would see an estimated 1000 cars being sold in Germany each month. The firm didn’t come close to meeting that figure. It manages to sell only 817 of its vehicles in Germany for entire 2014 period.

Tesla Motor’s most recent reveal of its earnings had Musk admitting that the firm would not be able to reach its forecasted 1,000 cars per week production rate for 2015. But Musk was not put off by 2014’s car sales. He stated that the arrival of the Model X will have his firm making between 1,600 to 1,800 of the cars per week when the entity reaches full production.

Tesla has sold 958 of its Model S vehicles in Germany this year leading up to August. Same time period in 2014 saw the firm sell only 520 of its vehicles in the country.

Germany Can Fuel Tesla’s Rise

Thursday had the Tesla CEO meeting with Germany’s Minister for Economic Affairs and Energy, Sigmar Gabriel. The wake of the Volkswagen scandal has clearly offered a chance to promoted the Tesla Motors brand within the European industrial powerhouse.

The effects of the Volkswagen row is still yet unclear. The rise of the the firm’s diesel scandal does not necessarily mean consumers will be put off diesel vehicles. And if people do turn away from the power source, there’s no definite way to link such an event to the rise of electric cars.

Other analysts believe the scandal will have a huge impact in diesel car sales. “People are going to start saying ‘Actually, we shouldn’t have diesel cars, let’s head toward petrol and electric’” says David Govett of Marex Spectron.

Though Tesla would love for this to be true, there is no clear data to back up the supposition. The Volkswagen story will take some time for consumers to wrap their head around. Regardless, the chance to score big in Germany still stands. Germany’s Minister for Economics and Greenery said that incentives for electric vehicles need to be put in place the country.

Tesla Motors  would reap great benefits from such a endorsement.

 

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