Tesla Model 3: Poor Sales in China, a Good Deal in France?

Sign of its underperformance in China where it is considered too expensive, the Tesla Model 3 is seeing its delivery times shortened in France.

Justifying oneself is admitting defeat. Therefore, Tesla remains unperturbed in China, subtly increasing the price of its vehicles by a few hundred euros to support its Premium positioning. But faced with a much more serious Chinese rivalry than assumed, can Tesla‘s strategy last much longer?

The other problem facing the American manufacturer from January 2024 is even more significant! How to maintain face when Model 3s destined for Europe — starting with France — will soon no longer be eligible for various bonuses. France will propose the idea in the coming weeks, an idea that will quickly spread to all other member countries as reindustrialization of the Old Continent becomes an urgent priority.

However, Model 3s are not selling. In October, sales dropped another 4.5%, totaling about 15,000 units on a market of 1.3 billion people. Meanwhile, the Tesla Model Y sells four times better… and BYD sold over 300,000 cars in one month.

Is it the concept of the sedan — electric or not — that is now outdated? All signs seem to point to yes. On Tesla China’s website, pre-configured Model 3 units are counted in the hundreds. Across all provinces in the country, Model 3s are accumulating. This, in a sense, benefits Europe, where waiting times are continuously decreasing: now between 2 and 6 weeks, a real achievement for any manufacturer.

The poor sales of the Tesla Model 3 in China are thus accelerating deliveries in Europe, where there is a shift of destination. In France, this allows for maximum sales… before the bonus ends. Ultimately, a silver lining.

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