Tesla’s Small Conveniences And Government Incentives Pay Big Dividends In Norway

by Trefis Team
-38.70%
Downside
996
Market
610
Trefis
TSLA
Tesla Motors
Rate   |   votes   |   Share

Tesla Motors (TSLA:NASDAQ) is starting to develop a good following in Norway due to the small benefits which are being offered to electric car drivers by the government. There are over 75 Tesla Roadster sports car owners in Norway who have gone as far as Copenhagen, the nearest store for them to get their cars. The company has now decided to service these customers by opening a new store in Oslo, Norway’s most populated city. This store will serve both as a showcase for Tesla upcoming models and service center for Tesla’s old models. It will be of the same level as Tesla’s other state-of-the-art service centers in London, Eindhoven and California.

Tesla’s Roadster sports car is among the top sellers along with Toyota Motor Corp’s (NYSE:TM) Prius hybrid and General Motors Co.’s (NYSE: GM) Chevrolet Volt plug-in hybrid electric car. It is a limited edition car with 2,500 scheduled for production, most of which have been sold, and the remaining few hundreds are expected to be sold in the next few months. The company will be starting the delivery of its new Model S from the middle of this year.

We currently have a Trefis price estimate of $38 which is about 20% above the current market price.

See our full analysis for Tesla’s stock here

Some of the reasons why people are attracted to Tesla are the small conveniences which the government is offering to Tesla Roadster owners. These people can travel in the bus lane and are exempted from paying a number of taxes which amounts to tax credits of 4 kr/km. Since the car has zero emissions, the government has waived most of the traditional taxes on these cars. The drivers also enjoy benefits of free parking and electric charging along with savings on combustion charges. With the rising oil prices and Roadster’s long winter and summer range, the drivers of Roadster are extremely happy with their sedan. [1]

Tesla ‘s great riding experience is also responsible for this positive response from customers. The car’s performance in winters is typically much better than other electric cars – it is warm, sensitive to handling and has the same range as in summers.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Tesla Expands Its European Footprint, Sacramento Bee, 11 April-2012 []
Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!