Tesla (NASDAQ:TSLA) stock, along with several other prominent names, suffered today as Russia-Ukraine conflict fears weighed on the market. However, today also brought reports of another international development that should boost Tesla down the road.
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The Latest Driver for TSLA Stock
Tesla’s popular Model Y is about to be available in several new markets. Deliveries have begun in the United Kingdom, Wales, Scotland and Northern Ireland. This was first announced by Tim Findlay, Tesla’s leader for the U.K. and Ireland in a LinkedIn post.
TSLA stock has been turbulent today. Shares closed down 4% for the day, an improvement from their previous drop of 6%.
The Road Ahead
This is an exciting opportunity for Tesla that investors shouldn’t ignore. Electrek reports that the company first began taking orders for the Model Y from U.K. consumers in October 2022, claiming they would be delivered in early 2022. Prices began at 54,990 Great British pounds.
Last month, the outlet reported that not only did Tesla achieve record sales in the U.K. in 2021, but its presence there helped the company secure more than 10% of the auto market. 34,000 Model 3s were delivered in the U.K., vastly outnumbering the next bestselling model.
There’s no reason to believe that the Model Y won’t be at least as popular at the Model 3 in Europe, if not more. What is unclear now is if Tesla can keep pace with the rising demand for its vehicles. As of now, though, that has not been a problem. While approval status remains uncertain regarding the company’s Gigafactory in Berlin, recent reports have indicated that Tesla is ramping up its Model Y production there.
Demand for electric vehicles in Europe will likely only increase this year. In January 2o22, it was reported that EV sales in the U.K. and European Union (EU) were rising faster than expected. Pending no further complications, Tesla is poised to take several large European vehicle markets by storm, further cementing its presence as the global leader of the EV race.
The Bottom Line
It’s important to note that every sector faces complications right now. The Russia-Ukraine tensions are pushing stocks down across the board, and they’ll continue to do so until diplomatic action is taken. For the foreseeable future, TSLA stock and its peers will be at the mercy of a struggling market.
As they ultimately do, though, the storm will pass. When it does, this European expansion will help push TSLA stock forward, helping it make up the ground it lost. Investors will need to be patient, but as long as they are, TSLA will hit a smoother road in the months ahead.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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