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Tesla’s Model 3 delivery challenges in Europe are growing pains for a global ramp

(Photo: TeslaStars/Twitter)

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The arrival of the cargo ship Glovis Captain on the port of Zeebrugge earlier this week heralded new opportunities and challenges for electric car maker Tesla. The massive vessel is estimated to be carrying around 3,000 Model 3, which are expected to start an electric disruption in Europe’s passenger car market. At the same time, the arrival of the highly-anticipated sedan also means that deliveries to reservation holders in the region are about to begin. 

Delivery Logistics Hell, Part 2

In true Tesla fashion, plans were underway to get the recently-arrived Model 3 to customers as quickly as possible. Thus, instead of taking a while before starting handovers to reservation holders in the region, Tesla immediately went to work. Reports from the Tesla community even indicated that they received messages from the carmaker indicating that they could pick up their Model 3 starting Wednesday at the company’s Tilburg facility, shortly after the cars arrived on Zeebrugge.

Soon, social media posts from the Tesla community revealed that the first Model 3 deliveries in Europe were already underway. That said, it did not take long before Tesla became unable to deliver as many vehicles as they estimated. Some reservation holders even went so far as to state that they were advised to pick up their Model 3 the following day. While an additional day is but a drop in the bucket compared to the nearly three-year wait for the electric sedan experienced by reservation holders, Tesla’s inability to deliver as many vehicles as it expected became a great inconvenience nonetheless.

On Wednesday, Elon Musk took to Twitter to apologize for the delivery delay in Europe. In a tweet, Musk explained that Tesla met some “unexpected challenges” with the vehicles coming through the Belgian port. Nevertheless, Musk noted that Model 3 deliveries should start moving on Thursday.

Logistics Challenges – Not Sweeter the Second Time

Ultimately, this is yet another case of Tesla miscalculating and shooting itself in the foot in the process. In the case of Europe’s first Model 3 deliveries, reservation holders were expecting their vehicles at a later date to begin with (the reservation holder Musk responded to on Twitter, for example, had a delivery date of 02/16/2019). The earlier delivery estimates, and the succeeding failure to meet said estimates, all transpired under Tesla’s own doing.

That said, Tesla’s journey with the Model 3 to date hints at something positive following the company’s logistics challenges in Europe, considering that the electric car maker faced the same issues in the US last September. During that time, Tesla was just hitting its stride with the production of the electric sedan. Tesla was also going for profitability, which required a record number of vehicle deliveries. Tesla’s deliveries became so backlogged that reservation holders saw their handover dates rescheduled multiple times.

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Just like Elon Musk’s recent tweet, the Tesla CEO owned up to Tesla’s challenges then, explaining that the company had gone straight from “production hell” to “delivery logistics hell.” Musk also mentioned later that challenges in logistics are easier to solve than production issues. True to the CEO’s word, Tesla delivered a record number of vehicles in the third quarter, with Q3 2018 handovers totaling 83,500 vehicles including 55,840 Model 3. Ultimately, these deliveries helped the company achieve its first definitively profitable quarter in years. These logistics challenges were completely absent in Q4 2018 as well, when Tesla delivered a total of 90,700 vehicles, including 63,150 Model 3.

Lessons Learned and Experiences Gained

With this in mind, it appears that Tesla’s current challenges in delivering the Model 3 to European customers are something that the company can handle. Tesla’s experience in the United States alone should help the electric car maker gain enough footing to conduct handovers in the region in a manner that is smooth, convenient, and well worth the nearly three-year wait for Model 3 reservation holders.

While Tesla appears to have miscalculated its initial European Model 3 deliveries, the company is in a constant effort to improve its logistics. Elon Musk took particular notice of this issue in the recently held Q4 2018 earnings call, when he was discussing the probability of Q1 2019’s profitability.

“We’re going to get cars to China and Europe and make sure that we have good logistics for the whole delivery process, from factory gate to the customer. That’s obviously pretty far from California to get to Europe and China and make it to, again, our two customers. So, we’re working every aspect of that logistics chain. And I think we’ve — I think it’s going to be good. I would say at this point; I’m optimistic about being profitable in Q1. Not by a lot, but I’m optimistic about being profitable in Q1 and for all quarters going forward,” Musk said.

For the meantime, the beast that is the Tesla Model 3 is still waiting for its chance to fully saturate the European market.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla vandal who lit Las Vegas repair center on fire arrested

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A vandal in Las Vegas who lit a Tesla repair center on fire has been arrested, bringing a name and face to the crime that engulfed vehicles and a structure in flames.

Officers in Las Vegas arrested Paul Kim, a 36-year-old, on Wednesday. He faces charges of arson and possessing an explosive device.

The Tesla repair center at 6260 West Badura Avenue was set aflame on March 18 at around 2:45 a.m. In total, five vehicles were set on fire, as well as the building itself. It was one of the more notable instances of vandalism against Tesla in recent months, but police now have their culprit.

Las Vegas Metro Police Department Sheriff Dori Koren described the weapons Kim used to execute the attack:

“He used what appeared to be multiple Molotov cocktails and firearms to conduct his attack.”

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As the instances of attacks on Tesla continue to be publicized, we are now seeing considerable pushback from owners, the company, and even the United States government regarding what it calls “domestic terrorism.”

Owners are now filing lawsuits against those who vandalize their vehicles, as the first civil suit against a vandal was filed in Texas yesterday.

Tesla has not made any moves itself against the vandals, but we expect the company to potentially enter some litigation against groups or politicians that incite violence against its property and the owners of its vehicles.

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Additionally, the U.S. government has utilized the FBI to probe incidents against Tesla as a part of them being constituted as instances of domestic terrorism. Earlier this month, the Bureau established a specific task force to handle Tesla-related attacks.

“The FBI has been investigating the increase in violent activity toward Tesla, and over the last few days, we have taken additional steps to crack down and coordinate our response,” FBI head Kash Patel said on X. “This is domestic terrorism. Those responsible will be pursued, caught, and brought to justice.”

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Elon Musk clarifies Trump tariff effect on Tesla: “The cost impact is not trivial”

The U.S. President has stated that Elon Musk stayed silent and provided no input in the administration’s tariffs.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

U.S. President Donald Trump’s plan to implement a 25% tariff on non-U.S.-made vehicles starting next week would affect American electric car maker Tesla. 

This was confirmed by CEO Elon Musk in a recent post on social media platform X.

Musk and Trump

While Elon Musk works closely with the Trump administration due to his role in the Department of Government Efficiency (DOGE), the U.S. president has emphasized that the Tesla CEO never asks for favors. This was highlighted in his recent comments, when he stated that Elon Musk stayed silent and provided no input in the administration’s 25% auto tariffs.

When asked by reporters if the new tariffs would be good for Tesla, Trump noted that they may be “net neutral or they may be good.” The U.S. president also pointed to Tesla’s automotive plants in Fremont, California and Austin, Texas, which produce vehicles that are sold in the country. “Anybody that has plants in the United States — it’s going to be good for them,” Trump noted.

Tesla Affected

In a post on X, Elon Musk clarified that the Trump administration’s tariffs would affect the prices of vehicle parts that are sourced from other countries. This was a concern that Tesla previously outlined in a letter to the U.S. Trade Representative, which noted that even with “aggressive localization” of its supply chain, “certain parts and components are difficult or impossible to source within the United States.”

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As per Musk in his recent post on X, the cost impact of the Trump administration’s tariffs is no joke. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote in his post.

Potential Effects

Reactions to Musk’s comments from users of the social media platform were varied, with some speculating that the Trump auto tariffs could result in Teslas becoming more expensive in the United States. Despite this, the potential increases in Tesla’s vehicle prices might not be as notable as other cars, particularly those that are produced outside the country.

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Hyundai’s $7.6B Georgia plant dodges Trump’s 25% Tariffs  

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Hyundai-Georgia-plant-vs-trump-tariffs
(Credit: Hyundai USA)

Hyundai’s $7.6 billion Georgia plant dodged U.S. President Donald Trump’s recently announced tariffs on imported vehicles and auto parts.

The South Korean automaker’s Hyundai Motor Group Metaplant America (HMGMA) in Georgia celebrated its opening recently by announcing plans to expand the factory. Hyundai aims to boost production by two-thirds, increasing HMGMA’s capacity from 300,000 to 500,000 vehicles annually.

“This plant couldn’t come at a better time than now. Because definitely all the cars that we would produce here are going to be exempted from any tariffs,” said Hyundai Motor Company CEO Jose Munoz.

President Donald Trump recently announced 25% tariffs on auto imports at the White House. President Trump praised the HMGMA plan in Georgia, commenting it was a “clear demonstration that tariffs very strongly work.”

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According to the Associated Press, the Georgia expansion ties into $21 billion in U.S. investments. It includes a $5.8 billion steel mill in Louisiana, which will supply parts for Georgia and Alabama plants.

Hyundai aims to employ 8,500 workers at the Bryan County site. Battery partners are estimated to add 3,500 more jobs. The car company does not have worker estimates for HMGMA’s expansion plans.

Hyundai Motor Group Executive Chairman Euisun Chung said the legacy automaker came to Georgia “to stay, to invest and to grow.”

“Standing here today, I can say I have never been more confident about building the future of mobility with America, in America,” Chung said.

Hyundai started EV production in Georgia six months ago. As of this writing, over 1,200 workers run the massive plant. Hyundai’s Georgia factory builds two electric SUVs now. The IONIQ 5 is already in production. Hyundai will start producing the IONIQ 9 this spring. Hyundai plans to produce hybrids, too. Munoz predicted hybrids would eventually make up one-third of production.

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