Tesla withdraws the Model S and X from the customization platform.
In a significant shift, Tesla has removed the "Order" button for the Model S and Model X from its configurator in multiple European markets, including Germany, Norway, the UK, France, and the Netherlands. This decision reflects Tesla's response to dwindling demand for these models in Europe, where sales have declined significantly.
The removal of the order button effectively means Tesla is not accepting new orders for these two higher-end models in Europe at this time. This development coincides with broader market challenges for Tesla in Europe, including increasing competition, stricter regulations, and shifts in consumer preferences towards more affordable electric vehicles.
In the US, the Model S and Model X have received a new facelift in June. The facelift includes slight adjustments to appearance, equipment, and comfort, and new exterior colours, Diamond Black and Frost Blue Metallic, are now available to order. However, the drive technology for the Model S and X in the US remains unchanged.
Despite the changes, the Model S and Model X now play only a minor role at Tesla globally, and especially in Europe. In Q2, there were 373,728 Model 3/Y and 10,394 "other" Teslas, with the Model S and X combined under "Other". The Model Y and Model 3 make up the majority of Tesla sales.
The Model S Long Range in the US now starts at $84,990 after the new facelift, a $5,000 increase. The Model S Plaid now starts at $99,990, also a $5,000 increase. The Model X Long Range starts at $89,990 after the facelift, a similar price increase.
It is currently unclear whether this step is temporary or permanent. The latest facelift model is still available for order in the US. Meanwhile, new wheel designs are available for the Model S and X in the US with the new facelift.
In Germany, the distribution of the Model S and X may no longer be profitable, as only 58 new Model S and 59 new Model X were registered in the first half of the year, compared to 6,305 new Model Y. This contrasts with the US, where the Model X Plaid in particular has seen a price increase and remains available for order.
Tesla continues to maintain active sales and upgrades for its more popular models in Europe, such as the Model Y, although even those registrations have faced recent declines. The company remains active in other initiatives such as expanding Full Self-Driving (FSD) transfers in the region and securing multi-billion dollar deals for AI chipsets and energy storage solutions, showing focus on other growth areas.
In France and the Netherlands, only used cars are available for the Model S and X, and no newly configured ones. This change is also observed in Norway, the largest European market for electric vehicles, and in the UK, the second largest. Typically, Tesla has seamlessly transitioned to an improved model in the configurator without announcement.
This news comes as Tesla continues to push the boundaries in electric vehicle technology and expand its offerings. The company recently unveiled the Cybertruck, an electric pickup truck, and is working on the Semi, an electric semi-truck. Despite the challenges in Europe, Tesla remains a leader in the electric vehicle market and continues to innovate and grow.
References: 1. Tesla Removes Order Button for Model S and Model X in Europe Amid Poor Sales 2. Tesla Model S and Model X Sales Decline in Europe 3. Tesla Secures Multi-Billion Dollar Deal for AI Chipsets and Energy Storage Solutions 4. Tesla Expands Full Self-Driving Transfers in Europe 5. Challenges Facing Tesla in Europe
- The industry-leading company, Tesla, has stopped accepting new orders for the Model S and Model X electric cars in multiple European markets due to dwindling demand.
- Despite a price increase, the Model S Long Range and Model S Plaid are still available for order in the US, while the Model X Long Range also sees a similar cost increase.
- In stark contrast, the Model Y and Model 3 comprise the majority of Tesla's global sales, with the Model S and X playing only a minor part, particularly in Europe.
- As Tesla focuses on innovation and expanding offerings, such as the Cybertruck and the Semi electric semi-truck, the company faces challenges in Europe where only used Model S and X cars are available in places like Germany, France, the Netherlands, Norway, and the UK.
