Tesla (TSLA) Receives Green Signal To Sell Model 3 In Europe

Tesla, Inc. (NASDAQ:TSLA) has received green signal to sell Model 3 in Europe, per Bloomberg. With this, the Electric vehicle (“EV”) pioneer crossed the final obstacle in selling its top seller in Europe. Per the news, delivery of the Long Range Battery version of the midsize sedan will begin in February.

This vehicle launch in Europe is of huge importance to Tesla as the U.S. federal tax credit on the purchase of Tesla vehicles has been halved, with effect from Jan 1, 2019.

Palo Alto, CA-based Tesla is optimistic about the European market. This automaker estimates the size of the European premium sedan market to be more than double of the one in the United States. Moreover, North America Model 3 delivery volume may not be sustainable until lower-cost versions are introduced. Given this, the launch in Europe will not only open up a huge opportunity for this carmaker but also help it compete with automakers in Germany for the premium car market.

Over the past year, shares of Tesla have outperformed the industry it belongs to. Over this time frame, shares of the company have lost 14.3%, whereas the industry declined 17%.



Tesla currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Fox Factory Holding Corp. (NASDAQ:FOXF) , Dana Incorporated (NYSE:DAN) and AutoZone, Inc. (NYSE:AZO) . While Fox Factory currently sports a Zacks Rank #1 (Strong Buy), Dana and AutoZone have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past year, shares of the company have risen 63.3%.

Dana has an expected long-term growth rate of 2.6%. Over the past month, shares of the company have gained 36.8%.

AutoZone has an expected long-term growth rate of 12%. Over the past year, shares of the company have increased 7%.

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