Tesla aims to increase its vehicle sales in Germany by 100% in 2022. However, the EV manufacturer faces an uphill battle as Germany’s electricity prices continue to rise.
“Our goal is to double sales every year, so we would be at around 80,000 units in 2022,” a Tesla site manager reportedly told Automobilwoche.
Tesla delivered 39,714 units in 2021. Giga Berlin kicked off operations earlier this year in March. Tesla sold 24,734 units between January and August 2022. The company’s sales in Germany increased by nearly 40%. Its market share also increased to 2.7%.
Challenges to Tesla’s Sales Goals
The Center Automotive Research (CAR) predicts electric vehicle sales will have a “significant cost disadvantage” in Germany from 2023 moving forward.
As per Handelsblatt, CAR’s analysis on EVs calculated that the profitability of electric cars would decline from the loss of subsidies. It also argued that rapid electricity prices would hinder prospective buyers from transitioning to electric vehicles.
Tesla has always been a dynamic and forward-thinking company that could survive and thrive without subsidies for its electric vehicles. However, rising electricity prices might indeed be a challenge to overcome as Tesla works to increase its sales in Germany.
Consumer electricity prices are expected to rise in Germany by about 60% in 2023, according to the Association of Local Public Utilities (VKU). The Russia-Ukraine war heavily contributed to rising electricity prices in Germany.
Tesla Model Y sales in Germany
The Model Y has proven to be Tesla’s most popular vehicle in Germany, getting the most private new registrations.
Tesla Giga Berlin is currently ramping Model Y production. It already started producing 1,000 vehicles per week and is working on reaching 5,000 units weekly by Q1 2023. Brandenburg’s Economic Minister Jörg Steinbach noted that Giga Berlin has been increasing its workforce as well. Steinbach believes Tesla’s production ramp in Germany is still on schedule.
“For me, the balance is completely positive! The company is running. The speed at which production is currently taking place is impressive for me as an engineer. Operations have been running in two shifts since the end of May, and there should be three shifts by the end of the year. All of this speaks for itself,” Steinbach said.