It is undeniable that the car manufacturing behemoth Tesla and its CEO Elon Musk have been making waves in the news and the industry lately. With the electric vehicle (EV) company continuing its rally in the stock market after its successful stock-split scheme implementation, it catapulted Musk to become the world’s third-richest person – pushing over Facebook’s founder Mark Zuckerberg to fourth place.
But an analyst over at Forbes decided to share their take on this recent development by citing key figures of the company’s sales figures for the last month. Jim Collins, a contributor over at Forbes, shares that the recent news is just a ‘stock market-pleasing hype’ citing the company’s performance in key markets in the international stage for the month of August.
Tesla Model 3 outsold by Volvo Polestar in key markets
To be able to show the other side of the coin, Collins cited August delivery figures of two Nordic countries – Sweden and Norway. Though only showing a small part of the company’s overall sales figures for the month of August, it shows insight on its performance amidst the limited amount of data being reported by Tesla itself.
In Sweden, Volvo Polestar 2 outperformed Tesla’s Model 3 with 284 units delivered compared to the latter’s 235. In neighboring Norway, Volvo severely dunked Tesla with 504 unit deliveries done. It’s almost twice compared to the Model 3’s mere 264 units.
This might be a small market to make comparisons of but with the scarcity of data available, it at least provides a glimpse of the EV manufacturer’s international sales performance. This event gives the public an idea of whether Tesla will be able to surpass its performance during the same period last year. The number of Tesla unit registrations decreased significantly accounting for a 76% drop in several major markets, Collins shares.
Citing this, the Forbes contributor raised whether the ongoing construction of Tesla’s Gigafactory in Germany a worthwhile move. He argued that with the weakened performance in Europe, the factory would be unpractical. Current models that are sold in the European continent are made in the company’s factory in Fremont, California.
He also attributed the wide number of options available for the consumers such as Volvo and VW and the global economic stagnation brought upon by the Coronavirus disease – 2019 (COVID-19) pandemic for the company’s weakened state in Europe.
Collins presented Norway as a perfect test case for how carmakers can capture the market thus this recent development should be an eye-opener for auto analysts and enthusiasts all over the world.
The Forbes writer adjourns his article by reminding that the auto industry is very competitive thus companies, including Tesla, should be on the constant lookout for the latest developments in order to not be overwhelmed by the sudden changes brought upon the times.