Yesterday, Electrek reported that Tesla (TSLA) had another record month of sales in the UK. We noted in Could the Tesla Model 3 Disrupt the UK EV Space? that the Tesla Model 3 became the third-best-selling car in the UK in August. The company began delivering its Model 3 to the UK market in June.
In August, the automaker delivered 2,082 Model 3 cars in the UK. Tesla bested this record with the delivery of 2,864 Model 3s in September and a total of 3,459 units.
Tesla’s market share in the UK
Tesla’s market share in the UK rose to 2.2% in September, boosting overall acceptance of EVs in the UK. Although total vehicle registrations declined by 1.6% year-over-year in August, BEV (battery electric vehicle) registrations surged 377.5% during the month. During September, diesel car sales dropped by 20% while gasoline car sales increased by 4.5%, according to Electrek.
Tesla’s deliveries in the UK sets a record
Tesla’s deliveries of total vehicles in the UK during the third quarter comes to 6,244 vehicles. The Model 3 contributed more than 86% of these deliveries.
Electrek noted that Tesla delivered more vehicles in the last three months than it did in all of 2018. On May 1, Electrek reported that Tesla’s sales of its Model S and Model X peaked in 2017 after seeing steady growth. So, the Model 3’s launch has given Tesla a new lease on life in the country.
Model 3’s disruptive force
Model 3 appears to be a disruptive force in the countries where it has debuted. According to Electrek’s May 1 report, Tesla’s Model 3 was also Italy’s best-selling EV in September. Tesla accounted for 26% of the EV market share in the country, delivering 325 Tesla Model 3s.
The Model 3 was also September’s top-selling EV car in Norway, with a market share of 21%. Tesla even outpaced the ICE (internal combustion engine) car sales in Norway during the month. You can read Is Tesla Giving ICE Makers a Run for Their Money? for more on this topic.
Tesla recently launched the Model 3 in Australia and New Zealand, resulting in an impressive run in those countries. On August 19, Teslarati reported that Tesla was mainly responsible for the growth of the EV market in the US.
Tesla Model 3’s strides in the UK market
The Tesla Model 3 is making bigger advances in the UK with each passing month. Its huge backlog of reservations is also helping demand. If this momentum continues, Tesla could achieve sizable volumes from the UK in the fourth quarter.
This forecast could be a major factor in the company achieving its ambitious target of 360,000–400,000 deliveries in 2019. The company achieved a record third quarter, which topped its previous record in Q2 2019.
However, to reach even the lower end of its delivery guidance for 2019, Tesla will need another record quarter with deliveries of at least 104,781 units. The newer markets for the Model 3 could be instrumental in achieving its delivery goal.
Tesla’s stock performance
Meanwhile, Tesla stock has lost 26.5% of its value year-to-date. Despite two quarters of record deliveries, analysts are still not positive on the stock.
Moreover, mainstream automakers Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) haven’t achieved any notable success in the EV space. The stock prices of these companies have reported year-to-date growth of 11.9%, 2.1%, and -4.9%, respectively. You can read F, GM, FCAU: Who’s Winning the US Truck Sales Race? for more on their third-quarter deliveries.
Tesla’s profitability concerns
Analysts and investors are primarily concerned about Tesla’s profitability, which we detailed in Tesla’s Profitability, Not Demand Could Be a Problem. Tesla CEO Elon Musk aims to address these concerns by launching new models.