Tesla expands European charging network

Tesla inaugurated three new supercharger stations in Germany to allow Model S owners to travel to Switzerland and even reach Austria. Tesla Motors is expanding its European charging network and hopes to succeed before the end of 2014.

Tesla plans to cover Europe

The plan is no small task. Tesla wants to open more than 30 service centers and stores in Europe, as well as boost its sales for the Model S. In typical Tesla style, it wants to do this before the end of the year, which has raised concerns among investors.

The electric vehicle (EV) Model S will be sold at a starting price of about $70,000 (over 55,000 Euros) in Europe. In order to meet this goal, Tesla needs to jump its deliveries by more than 55 percent this year, globally. A quick search on Seeking Alpha will show plenty financial experts advise caution with Tesla, stating that the stock is over-valued. Elon Musk, Tesla Motors CEO, has already publicly said the stock valuation is ridiculously high. Many analysts believe the company won’t be able to meet its goal since it already cannot keep up with the demand of its Model S.

Tesla’s real challenge

Tesla’s biggest hurdle isn’t a technological one. Its battery technology and management have already demonstrated they work well, even beyond its initial hopes. The only accidents were road hazards and home charging stations the company hadn’t approved, so far. The Model S received the highest NHTSA ratings. The problem Tesla faces is leveraging its manufacturing process. It needs to bring up its manufacturing capacity to at least 50% to meet its ambitious goals.

The only ways to do this would be to have another manufacturing plant to assemble the Model S and Model X. This could be done with a strategic alliance with another carmaker to use their assembly line, such as when Fisker used Valet to assemble its Karma plug-in hybrid (PHEV). The other, more costly alternative would buy another manufacturing plant, something that wouldn’t surprise us. Either way, this means more financial resources spread out and the company’s expansion strategy will be scrutinized by industry experts.

How does Tesla do it?

No wonder Tesla gets under the skin of many companies, not just traditional carmakers. Tesla Motors achieves what many would like to, but can’t. With lightning speed and less capital than most high-profile players, Tesla achieves in months what others do in years. It does this with a brilliant overall vision, strategy and expanding resources at the right pace, in the right places. In other words, Tesla spreads its resources globally, which helps it build its leading industry role.

So why aren’t more companies doing the same? Many are already well established, but their culture slows down the rate of their expansion. Investors also get in the way by demanding more return on investments (ROI) than a clear sustainable future vision. Tesla Motors is hoping that the will and commitment to put everything on the line, to not be afraid of spreading itself thin, will make it the key central player in the EV world.

Tesla Motors will very likely achieve its goal of opening another 30 centers throughout Europe and have enough supercharging stations to allow its Model S owners, and the future Model X travel around Europe in a year. The trick is to see how they will beef up their manufacturing by 55% in 2014.

The following two tabs change content below.
Born and raised around classic cars, it wasn't until Nicolas drove an AC Proulsion eBox and a Tesla Roadster that the light went on. Eager to spread the news about those amazing full torque electric vehicles, he started writing about this amazing technology and its social impacts in 2007. Today, Nicolas covers renewable energy, test drives cars, does podcasts and films. Nicolas offers an in-depth look at the e-mobility world through interviews and the many contacts he made in those industries. His articles are also published on Teslrati, CleanTechnica, the Beverly Hills Car Club and Medium. "There are more solutions than obstacles." Nicolas Zart

5 thoughts on “Tesla expanding European network before end of year”

  1. The Model S is essentially a hand built car similar to how Ferrari’s or Bentley’s… are made. This does not lend itself to the same high volume manufacturing as the mass produced automaker’s use to make standard cars. The quality of the Model S is on the same level as the hand built luxury cars and not the same as the mass produced standard cars of today.
    The price of the Model S is surprisingly low compared to other hand built cars of that build quality. Then add in lifetime recharging at Tesla charging stations, lack of frequent service appointments and gasoline, then the Model S is an absolute bargain.
    Mass produce an EV that is close to the build quality of the typical family sedan at a price that would be equal to what you would spend on a car+maintenance+gas for 100,000 miles and people just might see the light.
    But then you have another problem, keeping up with the demand for it.
    Which is the very problem Tesla has right now with a magnificent “hand built super luxury EV”.
    Now that Tesla “Elon Musk” has shown the world how to do it, it is up to the world to respond.

    1. I was talking with someone the other day about the Tesla Model S pricing. It is reasonable and I am impressed that Tesla is selling the Model S in the $70-90k range. There are a lot of luxury vehicles on the market that sell for what the Tesla Model S goes for.

      Appreciate you commenting and sharing your thoughts with us Eric.

  2. Indeed, Eric, that is the gist. The brilliant part, you highlight well here, is that they are robotically built to the highest quality, on par with the best exotic and luxury makers. This throws a serious monkey wrench in other carmaker’s wishy-washy excuses for not doing better.

    It is a bargain considering what you get. That’s why I never write about the price complaint. A lot of cars get sold at that price that don’t get the same NHTSA ratings.

  3. That’s one of the reason why it outsells any other car in its price category. The Model S handles very well, has frank accelerations, is very pleasing aesthetically, and all things considered, for that price and segment, a bargain.

Leave a Reply

Your email address will not be published. Required fields are marked *

Notice: Trying to get property of non-object in /home/carnewsc/public_html/wp-includes/link-template.php on line 347