It’s a pretty big day for Tesla, as it’s been given to go-ahead to start delivering Model 3 orders in Europe. This news comes as the company makes cutbacks to get it on the road to profitability while at the same time scaling up production on the Model 3. Tesla expects that European deliveries will begin next month, so its looking to jump on this approval right away.
This approval will put the Tesla Model 3 toe-to-toe with cars from European manufacturers like BMW and Audi on their home turf. Opening an entirely new market for the Model 3 will be critical to its success in 2019, especially as Tesla anticipates challenges here in the US throughout the year.
Bloomberg reported today that approval to deliver Model 3s has been granted by RDW, a Dutch vehicle authority. Pre-orders for the Model 3 opened up in Europe earlier this month, and it seems that the first variant to launch will be the one featuring a Long Range Battery. A precise date for the first Model 3 deliveries hasn’t been revealed yet.
Last week, Elon Musk sent out a company-wide email in which he announced that Tesla was laying off 7% of its workforce. It’s doing so at a time when it’s also looking to ramp up Model 3 production. Though Musk believes Tesla can meet its goals for 2019 and introduce a less expensive version of the Model 3, he wasn’t shy about saying that the year ahead will be a challenging one for the company.
Musk and Tesla also have to contend with expiring tax credits from the government here in the US, which will make the cost of buying a Model 3 even greater. The hope, of course, is that European sales help Tesla bring home a larger profit as it works toward launching the Model 3 in as many markets as possible. We’ll see what effect this European launch has on Tesla’s financials soon enough, so stay tuned.