Tesla Motors to Expand European Operations

By · March 12, 2013

Tesla Stores

Existing Tesla stores in Europe.

Tesla Motors debuted the production Model S and Model X prototype at the 2013 Geneva Motor Show. But the company's more important European news was not related to either vehicle. It was Tesla's focus on expanding operations in Europe as is its next step.

Production of European-market Model S sedans will begin in June. Deliveries will begin to trickle into Europe in July. But, in order to secure more Model S orders from Europe (and to service Model S vehicles headed there soon), Tesla needs a bigger footprint on the continent.

By the end of 2013, Tesla Motors says new retail stores will open in Brussels, Frankfurt, London and Amsterdam. More stores in undisclosed cities will open in 2014. The opening of retail locations will require additional service centers, which Tesla says will open in Geneva, Frankfurt, Brussels, Hamburg and Vienna in 2013.

"The European market is very well suited to the design intent behind our vehicles. Our focus is to combine design, engineering and performance with a forward-looking influence towards clean energy and sustainability," said Elon Musk, Tesla Motors CEO. "This year will be one of tremendous growth and expansion throughout Europe in some of Tesla’s most important markets, including Germany, Switzerland, Norway and the Netherlands. Final commitments are all in place and we look forward to Model S deliveries beginning this summer."

Tesla's pipeline of Model S reservations needs to be fed, so growth in Europe could be essential to extending sales of the Model S, buying time for the company as it adds more vehicles to its lineup—the Model X SUV and a more affordable small electric sedan— over the next several years.

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