Tesla has been reported to be losing market share in Europe. What is the truth of this? Let's find out.
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Tesla's Market Share in Europe
There seems to always be stories about Tesla's demand dropping in different markets - from China to the U.S., to now Europe. In fact, the latest FUD is that Tesla is losing 50% of market share in Europe and that there won't be any support for Tesla vehicles because the company would go under. This has caused many people to short Tesla.
Tesla has been able to make electric vehicles with a range at around 300 miles that is affordable. Tesla vehicles have the best blend of technology and affordability available in an electric vehicle today. But, the FUD is back... The price is too high... The economy is collapsing... The price of energy will be too much for electric vehicles... Tesla vehicles are overpriced...
Tesla shows that you will save on fuel by owning a Tesla over time. In fact, if you own a Tesla for a 10 year period, most likely, you'll end up making your cost in fuel to pay for the price of the entire vehicle. It becomes even more if you are able to charge your car for free at work.
What about equivalent cars to Tesla. There are VW and BMW cars that are in a similar price point to Tesla, but those cars don't perform as well, or they don't have as much range, or they don't quite have the technology that Tesla does.
FUD Many Times
FUD against Tesla has been fairly constant since 2017 when I first bought shares of the company. I don't see it stopping anytime soon either. When someone is the leader, you are going to have constant pressure to dethrone them and take them out of the number 1 spot.
If you look at light vehicle sales year to date, you can see that Tesla's are up 47% while all others are down, including Ford, BMW, General Motors, Hyundai-Kia, Stellantis, Subaru, Toyota, Mitsubishi, VW, Mazda, Volvo, Nissan, and Honda.
The Model Y is a luxury car, but it is affordable as well when you add in the fuel savings against the monthly payment. This is something many people fail to do. In the case of my Model 3 RWD, I am not paying any cost for fuel right now due to free charging and being able to charge at my place of work. When I had my Honda Fit, I was paying around $150 per month for fuel - and I wasn't driving that much compared to most people. Many people spend $500 per month on fuel.
My monthly payment ends up being about $330 net when you account for that fuel usage. That's a very affordable monthly payment for a luxury EV sedan. Tesla is doing many things right and one of them is making sure their service is top notch. Tomorrow, Tesla mobile service is going to visit me and fix a small issue with my seat for free.
In Q3, 2022, we will likely see Tesla's Europe market share increase beyond 20%. There has been some upgrades done, and Q4 will even be more telling about the truth of Tesla's market share. I would expect to see Tesla's market share around 25% in Europe.
What do you think about Tesla's market share in Europe? Is it dropping?
For more information, see this video from Tesla Economist:
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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