Tesla initiates China death strategy in Europe – EV prices HIT parity

Tesla initiates China death strategy in Europe - EV prices HIT parity

Tesla just stands at the death spiral in Europe. They put out a war cry. I’m serious. If you don’t think I’m serious, you need to pay attention to what just happened in China. Legacy auto, I mean, Tesla’s competition in Europe and China is concerned. They are extremely concerned. They have to be because if they’re not, then they’re finished.
Something historic just happened in Europe, most people didn’t even realize. Tesla when they brought their prices down an additional 8% after the recent discounts of more than €15,000. Well, they did something that they just did in China.
Tesla did the same thing in China, and it forced all of the competition, I mean, all of them, to bring their prices down as well. And what did that mean? That meant that EVs in China became historically affordable. If you include the cost of inflation, EVs have never, ever been cheaper. They are now 20% cheaper on average, worldwide than they were twelve months ago.
Tesla has done the same thing now in Europe, bringing the price of their cars down to be on par with gasoline-powered vehicles. This is historic. This will put tremendous pressure on the competition. And it will do one thing which will be very, very good for you.
In Germany, last year, Toyota sold more cars than Tesla. You expect that right, as they are the world’s biggest car company. So far this year? Well, it looks like Tesla will likely actually beat Toyota in one of the most important car markets on the planet so far. The Tesla Model Y is the best-selling electric car in Germany for the first 2 months of the year and the best-selling car in the United Kingdom. If you add to this the fact that Tesla just reduced the cost of the Model Y by an additional 8%, on top of the nearly 15,000 Euro discount they’ve already put on the car before that, well, it’s safe to say, in my opinion, the Model Y will be the best-selling car in Europe in 2023.
Every 4th EV registered in Germany in February was a Tesla. Tesla sold 7700 electric cars, which is an increase of 30% from one year earlier, which doesn’t sound like that much, but, in Germany, it’s quite an achievement because EV subsidies have been significantly reduced this year.
Now, The Wall Street Journal says that because electric car sales haven’t skyrocketed this year in Germany, clearly as a result of reduced subsidies and possibly a lack of stock. Therefore, that means that Germans are thinking twice about the bioelectric car. Is that true?
In February this year, 206,210 cars were registered, of those, 32,475 were fully electric. That’s an increase of 15% from February 2022, in my opinion that doesn’t support the Wall Street Journal’s claims. I think this is more kind of a mainstream media attempt to stop the electric revolution, which I think sucks.
KBA data showed that Tesla sold 7,711 vehicles, which is a 30% increase and an 82% increase from January when Tesla delivered 4241 vehicles. Now, if you actually extrapolate that data, that means that nearly 25% of all vehicles which were electric sold in Germany in February were Tesla, quite a staggering achievement.
What about in the United Kingdom, Well in the UK, electric cars represented exactly 17% of the car market. Now, Plugin hybrids represented only 6% as you can see, electric cars, fully electric cars, are much more popular than Plugins right now. These numbers mean that fully electric cars have increased their sales in the United Kingdom by 20%, versus the same month last year.
In February, the Tesla Model Y was the best-selling car in the United Kingdom. It’s come first and second before I think it, though, is still a pretty good result. It was by far the best-selling EV. In fact, by itself, it took 12% of the entire electric car market in the UK.
In February, Tesla took 18.1% of the EV market share in the UK. Audi took 9.7%, Polestar 8.8%, Volkswagen 8.7%, Kia 7.5%, and BMW 5.1%. Hyundai was back in 7th place with 5.1% as well, Volkswagen had 5% and Mercedes Benz 4.9%.
But if we look at the trailing quarter, meaning the last 3 months, from data provided by Clean Technica, we can see the was an interesting story going on here. Many people say, well, that means that Volkswagen Group is dominating Tesla. I told you. I told you the Volkswagen Group was going to do amazing things. I told you they’re the best. Well, that’s not quite true.
Tesla has 27.9% or 28% market share over the past three months in the United Kingdom, Volkswagen itself has 9.1%, Audi 6.6%, Skoda 3.1, and Porsche 2.1%. That means that Tesla still very clearly leads. Even though the Volkswagen Group has a lot of car brands, tesla still is the market share leader in the UK, 28% versus the Volkswagen Group’s 22.9%.
Now, the top three electric vehicle automakers in the United Kingdom have been Tesla, the Volkswagen Group, and the BMW Group. Now, for the last six months or so, however, BMW is starting to fall, while Tesla and Volkswagen have actually grown their market share in the UK and also in Germany.
Now, the interesting thing is, if you have a look at the brands that are struggling in Germany and the UK, you can see some clear parallels. For example, BMW’s sales are down in both countries by around 15%. Honda sales, they’re down by 12.2%. Jeep who don’t have any EVs, they’re down 36%. Lexus is doing horrendously, their sales are down 35%. Mitsubishi with no fully electric cars, their sales are down 73% and Subaru, who also doesn’t have any EVs, is down 28%.
It’s pretty likely what we’re going to see over the next few months is these companies who are making more EVs. For example, the Geely group, Tesla, even the Volkswagen Group to some extent, and companies like Upstarts, MG, and BYD. Likely, we’ll see them selling more EVs in Europe, taking more market share away from the traditional legacy automakers and bringing in more affordable electric cars. Plus, Tesla sales are likely to be very impressive this year in Europe. There just isn’t any other alternative right now to a Model 3 and Model Y at the prices that Tesla is selling them at.
Now, Tesla has decided on a certain strategy. You can see what that strategy is, to crush their competition. The price you can now get a Model Y and a Model 3 for is truly on par with gasoline-powered vehicles in Europe. Looking at the actual prices now for their vehicles, for Tesla’s vehicles in Europe, they are really, truly on par with their gasoline-powered equivalents. And really, this is something we should be celebrating. We should be saying, this is amazing. Thank you, Tesla.
Don’t know how you think this is, but this is such a blessing. Do you know why it’s a blessing? It’s eventually going to force all the competition to bring down their prices. This is exactly what Tesla did in China. Think about it. Tesla brings down their prices in China and everyone is forced to do the same thing. BYD’s bring down their prices, Nio, X-peng , Leap-motor, everyone is doing it. The same thing will happen in Europe. It is inevitable. It is only a matter of time. Sure, they’ll have to sell at a loss, but they’ll have no choice. And this is why my predictions of bankruptcy coming sooner rather than later, will likely prove to be true. This disruption will happen much quicker than many people realize.

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The Electric Viking

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