Tesla (NASDAQ: TSLA) is to finally enter the Israeli market, having had its entry stalled for over half a year by Coronavirus and difficulties in obtaining an import license from the Ministry of Transport.
The world’s most valuable carmaker is preparing to start marketing electric cars in Israel in the second half of next year. The expansion into Israel is the latest move as part of its international efforts to expand its entry to new markets in Europe.
Although Israeli is a small and geographically isolated auto market. the country’s car market has grown considerably over the last decade. Israel has led the fintech boom and has become world leaders in certain industries. As the country has prospered, so has its people and the auto sales industry.
In 2016, auto sales hit an all-time record high, with 286.701 cars sold. Since then, sales have slowly declined. There were just 253.800 sales in 2019. However, this year started well with Year to Date February sales at 66.157, up 6.5%. COVID Restrictions saw a decline this year, but sales are growing. In October the market maintained the previous months’ improvements by growing 4.1%, with 14.554 units sold.
Busy Year Ahead for Tesla (NASDAQ: TSLA) in Israel
Tesla (NASDAQ: TSLA) will start marketing the Tesla 3, Tesla S and Tesla X models, whose prototypes have already passed Israeli standards compliance. The first Tesla Y, which is currently being marketed in the US, will arrive in Israel at the beginning of next year. It will then undergo testing to meet Israeli standards, with the hope for the Tesla Y to be available in the latter half of 2021.
The California-based company started in 2003, expects to complete the purchase of a service garage in central Israel imminently. A contractor to set up a quick supercharger network nationally has yet to be chosen. Meanwhile, Globes is reporting that Tesla is considering leasing an existing logistics park that will serve as the spare parts center for the company in Israel.
