Tesla Motors to Assemble Model S in Europe

Automobile Assembly LineTesla Motors, while experiencing a slow start, has been upping its production in recent months, especially to satisfy the thousands of clients who have been waiting patiently for their Model S, nearly 15,000.

Even though the sales of conventional vehicles in Europe has seen a drop due to the lagging economy, there are still plenty of clients who are interested, and more importantly, can afford the luxury electric vehicle, if only it were available.

The Tesla Model S though, isn’t just an American invention, and will soon be available in Europe. Tesla Motors isn’t planning on manufacturing or even exporting to Europe, because of the tax implications that such entails.

An assembly plant, though, is the perfect vehicle to make Tesla Model S available in Europe without spending a lot on import tariffs. This is similar to Toyota’s strategy to avoid import tariffs with its line of trucks.

By building a 200,000-square-foot assembly plant in Europe, Tesla plans on releasing left-hand-drive models for European markets by next year. The parts will be manufactured here in the US, and will be assembled in the new facility. Prices for the European Tesla Model S will probably be higher due to the VAT, but it seems that the market just might bear it for such an exclusive vehicle.


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