Nearly Three Quarters Of Q2 2016 Tesla Sales Were Domestic

JUL 7 2016 BY MARK KANE 8

Tesla Model X & S

Tesla Model X & S

After slower pace of growth in the first two quarters, Tesla Motors is on a mission to produce and sell 50,000 sales in the second half of the year, which as the company points out, is the about the total number of deliveries for all of 2015.

Q1 and Q2 sales ended at 14,810 and 14,370.  And Tesla further notes that another 5,150 EVs were “in transit” on boats and trucks to customers on June 30th), so with a goal of another 50,000 (~79,180 total) delivered cumulative in the second half, Tesla still has chance to reach 80,000 for the full year.

All signs tells us that it will be busy end of the year yet again for Tesla in order to reach that number.

Introducing the company’s second mass-produced model to the market (Model X) and ramping-up production on a refreshed product (Model S) with new trim levels (60 kWh/75 kWh) certainly wasn’t easy on Tesla in Q2, but Tesla managed to still achieve growth of overall sales versus Q2 of 2015.

Tesla Launched The Model X In China On June 16th

Tesla Launched The Model X In China On June 16th

Naturally, analysts and those holding Tesla Motors the security as an investment (TSLA real time quote here) are still very concerned that delivering “just” 50,000 units in the second half would put the full year results at the low end of earlier company guidance (80,000 – 90,000).  For us, 75,000 or 85,000 makes no difference, either way it is a lot more EVs on the roads, and a lot more than the company sold a year ago.

As you can see below, IEV’s sales estimations shows that in Q2 about three-fourths of Tesla sales were made in the US.

This domestic-to-international imbalance has been achieved mostly to do the fact that almost all Model X deliveries in the first six months of the year (just under 7,000 worth) have been made domestically.  The last time the NA sales ratio was this high was in mid-2013 as the Model S was just then arriving in Europe.

As always, individual month-by-month sales for the Tesla Model S, Model X…and every other plug-in sold in America can be followed on our Monthly Plug-In Scorecard (link at top of page, or by clicking here).

Tesla Motors Car Deliveries - Q2'2016

Tesla Motors Car Deliveries – Q2’2016 (Model X/net NA)

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8 Comments on "Nearly Three Quarters Of Q2 2016 Tesla Sales Were Domestic"

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Another Euro point of view

Well, in Europe at least Tesla sales are decreasing since beginning 2016, however it is a bit early to know whether this is a firm trend. Q3 sales figures will tell. Also it is difficult to assess impact of unfavorable exchange rate. I am inclined to believe a combination of the following effects had an impact: 1/ waiting for Model 3 2/unfavorable exchange rate 3/reliability appearing as sub average 4/competition (for ex. sales in Sweden decreased simultaneously with Passat GTE coming to market and now leading (PH)EV sales there).

Exchange rates are really hurting them.

Wealthy Model S and X owners will soak up all the credits until 2018-2019, Model3 owners will be left without it…

Tariffs are not helping either.

Friends in Germany tell me that a model S will cost 20,000 Euros more than the price in the US. I just found the tax rates that may explain this. No wonder Tesla is thinking of building a plant inside the EU. (10% + 20% tax rate on a model S – look up the line item for Germany or France)

http://www.dutycalculator.com/dc/60152114/cars-motorcycles/other/electric-cars/import-duty-rate-for-importing-tesla-model-sedan-from-united-states-to-south-africa-is-25/

Thanks for the direct link. Very usefull.

Building a plant inside the EU will not make any difference to the tariffs.

They already do the final assembly inside the EU so that they don’t have to pay the 10% toll.

VAT is (of course) the same when it’s sold no matter if it’s made in the US or inside the EU.

There are other advantages for having a factory closer to the markets though, like for example less transportation cost.

Well, with the Model X ramp being primarily in the U.S. up until Q2, and the 3rd row seat recall at the beginning of the quarter, it makes sense that large amounts of Model X deliveries overseas was logistically difficult for Q2.

Also, Tesla is still production constrained and every Model X being built is a Model S that can’t be built in that slot. Therefore, as Model X occupies more slots, it makes sense that Model S production isn’t particularly growing since that production increase is going towards the X.

This will all balance out soon enough and we’ll have better perspective in a quarter or two.