Tesla To Build a Factory in Europe

Keeping the momentum going, Tesla said once it reaches 160,000 European sales, it intends to build a factory there, and its sales already exceed those of the United States.

In the first four months of this year, the Fremont, Calif. company sold 3,467 Model S sedans into Europe according to JATO Dynamics. This compares to 2,050 estimated in the U.S

“My aspirations for Europe are that we sell a comparable number of cars in Europe as the U.S.,” Musk told Automotive News Europe at the first UK delivery event in London.

The EU factory would add to a research and development facility in the UK “either next year, or the year after” and its Tilburg, Netherlands distribution center will be expanded as well.

In the Netherlands, the Tilburg plant puts the batteries back into Model S sedans imported from the U.S.

Globally, Tesla has projected a 56-percent increase with help from China and international markets.

Musk told Automotive News “it would make sense” to have a factory both in China and Europe once its global sales pass the half-million mark per year.

Tesla presently pays a 25-percent tariff in China, and in April said in the next three-four years the China factory should be built to avoid this fee.

Tesla does not price its Model S any more than inb the U.S. except for unavoidable costs levied against it in shipping to, and being taxed by China.

Next up also, to increase the momentum, is to be the Model X SUV. These are due to Q2 2015 in the U.S. and in Europe, by the end of that same year.