Uh oh… Tesla Motors Inc (TSLA) Gets a Model S Sales Surprise

Tesla Inc (TSLA)

Tesla Motors Inc sales in Western Europe are on the decline, and as per the European newsletter Automotive Industry Data (AID), the latest figures point to a near 25% drop. Tesla sales, mainly of the Model S, fell 23.8% in the seven months of this year from 8,443 in the same period of 2015 to 6,430, reported AID.  The EV firm does not give info about its sales in Europe.

Dropping sales in Western Europe

AID further noted that the electric car sales in June in the Western Europe – comprising mainly Volkswagen e-Up and e-Golf, Nissan Leaf, Renault Zoe, BMW i3, and the Model S – dropped 11% to 8,195. The drop could be because consumers have postponed purchase of the Model S sedan in favor of other the Model X SUV, or maybe they are waiting for the arrival of the Model 3, said AID. However, analysts believe the problem was due to the issues with the supply instead of a fall in demand, notes a report from Forbes.

Tesla Motors Inc (TSLA) Model X Norway

In the first seven months, the sales of Tesla Motors Inc cars in Norway dived 54.6% to 1,314, said AID. Some of the drop was due to the weak sales in oil-rich, socialist Norway, where electric cars’ sales were boosted artificially by government inducements and subsidies.

Peter Schmidt, an AID editor, said “worryingly for Tesla and electric car fanciers, the electric car sales downturn is happening right across Western Europe. The sudden ebbing in Norway’s Tesla registrations is echoed in most of the electric car markets regularly and exclusively monitored by AID’s trend-watchers every month.”

The biggest car market in Europe, Germany, was still not in negative territory, with overall sales of electric cars up by 4.7% in the first seven months. Germany started its 1.4 billion electric car subsidy scheme on July 1. Every electric car sale gets a rebate of $4,500 while plug-in hybrids qualify for $3,400. However, only the electric cars that are priced under $67,500 qualify. So, this excludes currents cars from Tesla, effectively until the Model 3 comes along, notes Forbes.

More competition for Tesla

In another not so good news for Tesla Motors Inc , Karma Automotive debuted the 2017 Karma Revero this Thursday night in Laguna Beach, California. The Karma Revero is a $130,000 four-door sedan, which looks quite similar to the Fisker Karma sedan created by Henrik Fisker. Three years ago, the car making company fell into bankruptcy despite fans like Justin Bieber, notes Bloomberg.

Unlike the Tesla Model X and Model S, the Revero uses gas, solar power and electricity to run. “It will be the first car sold in the U.S. powered by electricity, gas and solar,” the executives from Karma said. Instead of forcing any sort of new electric revolution, this new Karma Revero follows the old world (engaged analog driving) and New World T (alt-fuel energy and auto-drive).

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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