Tesla to Cease Sales of Model S and Model X in Japan as of This Month
Tesla, the leading electric vehicle manufacturer, has announced several significant changes to its Model S and Model X sales strategy, particularly in Japan.
In May 2023, the company discontinued the production of right-hand-drive (RHD) variants of the Model S and Model X in Japan, citing market and regulatory considerations. Since then, Tesla has been selling left-hand drive (LHD) versions in the RHD market. The decision aligns with Tesla's broader strategy concerning RHD markets.
Tesla Vice President of Vehicle Engineering, Lars Moravy, hinted at an upcoming refresh for the Model S and Model X, stating that "some love" is expected later this year. However, no specific details about the changes in the models have been provided.
The company also announced that it will stop accepting new orders for Model S and Model X vehicles in Japan on March 31, 2025. After this date, domestic sales of these models will end, and only existing inventory and pre-owned vehicles will be sold.
The costs associated with homologation processes, which are necessary to modify the LHD vehicles to comply with local safety standards in Japan, may have outweighed the benefits, given the modest sales volume of these models in the Japanese market.
The discontinuation of RHD variants of the Model S and Model X affects markets such as the United Kingdom, Australia, and Singapore. However, no information was provided about the sales volume of these models in markets other than Japan.
Estimated delivery windows for the Model S and Model X in Europe have been pushed back to as far as August. This delay may be due to the changes in the production and sales strategy in Japan.
Despite the discontinuation in certain markets, Tesla remains committed to the Model S and Model X. The company is currently selling around 10,000 units per quarter globally, with the majority going to the Canadian and U.S. markets.
Tesla did not provide an explanation for the sudden end of Model S/X sales in the Japanese market. The company has not yet revealed if the upcoming refresh will have any impact on the discontinuation of the Model S/X in Japan.
In conclusion, Tesla's changes in the Model S and Model X sales strategy in Japan and the anticipated refresh are significant developments for the electric vehicle industry. As more details about these changes emerge, we will keep you updated.
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