Tesla Motors received the European type approval for the Model 3, clearing the way for the compact electric sedan’s launch in the region.
Tesla has previously said that first delveries of the Model 3 in Europe should start in late February for the Long Range version.
The Tesla Model 3’s European type approval was issued by the Dutch RDW authority, Bloomberg reports. Launching the Model 3 in Europe is deemed crucial for Tesla, especially after Elon Musk said that the company faces a “very difficult” road ahead.
Tesla recently announced that it’s cutting its workforce by 7 percent (equal to over 3,000 jobs) in order to turn a profit on the upcoming lower-priced versions of the Model 3. Despite a halving of the U.S. federal tax credit, Tesla’s Elon Musk believes that sales from Europe and China will keep the company going.
At its third-quarter shareholder letter, Tesla said that “the midsized premium sedan market in Europe is more than twice as big as the same segment in the U.S.”
Offering the Tesla Model 3 in Europe will definitely put more pressure on the traditional German premium models of the same price. After all, Tesla has already managed to outsell models like the BMW 3-Series in the US with the Model 3.
Analysts acknowledge that Tesla’s competition cuts across the traditional segments, with the Model 3 stealing sales not only from midsize premium sedans but from midsize SUVs as well.