Tesla Model 3 Receives Go Signal in Europe

US electric carmaker Tesla Inc. on Tuesday has received the go signal to start deliveries of the Model 3 in Europe, allowing the company to roll out its battery-powered sedan next month.

The Netherlands Vehicles Authority (RDW), one of the European authorities in charge of licensing vehicles and their components, confirmed that the Model 3 was now homologated for Europe, where electric-car sales registered a 24 percent gain to 32,319 in October 2018.  

Last week, it was reported that thousands of Model 3s were being shipped to Europe and should arrive around February 2.

The approval came at crucial time for Tesla. Competition in the auto industry is expected to intensify as major auto firms plan to spend nearly $300 billion on electric vehicles and batteries in the coming years.

It also came as the Model 3’s price is about to climb further in the US. Tax credit changes in the US will likely make the vehicle more expensive in the states beginning July and even more expensive in December.

Enticing the Mass Market with Low-cost Cars

The Model 3 is vital for the Palo Alto-based group as the company famous for its high-price luxury vehicles attempt to entice the mass market with a more affordable option.

The lower-priced version of the Model 3 is on sale from €58,800 ($66,800), while the most basic version of the more exclusive version of the Model S starts around €89,000 ($101,116).

Tesla announced last week a cost-savings plan that aims to boost global deliveries of the Model 3. The carmaker would be dismissing 7 percent of its full-time workers and cut ties with several temporary employees and contractors.  

Tesla Chief Executive Elon Musk stated that their priority must be on delivering at least the mid-range Model 3 variant in all markets.

The firm encountered a number of production and delivery setbacks in 2018, which resulted in a slower release of the Model 3 than initially anticipated. Some of the problems were partly due to Tesla’s decision to present its shipping objectives before it had completed its assembly line.

Shares of Tesla were up 0.4 percent to $303.73 on Tuesday. The stock dropped to 7 percent on Friday following the company’s job cuts announcement and reports of weaker-than-expected fourth-quarter profit.

Shares of the carmaker has fallen 9 percent year to date, while it slipped 13.6 percent over the previous year.

HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can open an account now and make yourself updated with essential news in the market. Share your thoughts and experiences with us by commenting your HQBroker reviews.