To win in Europe, Tesla relies on compact vehicles

Tesla is eyeing the Old Continent. To establish itself on European markets, the CEO of the car manufacturer, Elon Musk, intends to adapt to what makes one of its particularities, namely the cramped nature of its parking spaces and the attractiveness of the population. for compact vehicles. In a recent interview, the entrepreneur said it would make sense for the first model produced at his Berlin plant to be a smaller electric vehicle than those the manufacturer sells across the Atlantic.

As a reminder, Tesla is currently building its factory in Berlin, where the American manufacturer will mass-produce electric vehicles, starting with the Model Y SUV. Its management has already announced that it will “establish the design and engineering original vehicles for world markets from Germany ”. So far, Tesla has designed all of its models at its facility in Hawthorne, California. The models produced in its factories in Shanghai and Berlin will therefore constitute an important departure for the manufacturer of electric vehicles.

In Germany, the manufacturer wants to build affordable vehicles, at less than 25,000 euros, but also suitable for European uses. In doing so, Elon Musk wants to attract engineers and designers to Europe, promising them to make something that is not just a copy of a great California model like Model Y. “Attracting the best is important. talents to do original design, and you know in Europe it would make sense to make a compact car, so maybe a hatchback or something like that, ”argued the entrepreneur, who recently became the second richest man in the world.

Elon Musk ambitious for Tesla

He then explained the reasons for the differences in taste between Europe and the United States in terms of vehicle size. “In the United States, cars tend to be bigger for reasons of personal taste and in Europe they tend to be smaller,” he said, pointing out the difficulties of parking in a dense urban environment. . “I was driving my Model X around Berlin and we had a hard time finding a suitable parking space. A compact car would be a good candidate for an original design, ”he added.

If competition will strengthen in 2020 for the American brand, with the marketing of new electric models from Volkswagen, Ford or Peugeot, Tesla is confident. In 2019, the manufacturer’s vehicle deliveries jumped by more than 50% compared to 2018, reaching 367,500 units sold. This represents an increase of around 50% compared to 2018 (245,240).

Above all, Tesla is expanding beyond its internal market. The brand now produces in China in addition to the United States. The company has set up a factory there, Gigafactory 3, in order to conquer the Chinese market, and bypass the taxes imposed by the trade war between the United States and China.

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