Tesla is gaining an advantage over traditional automakers during the coronavirus crisis because it does not rely on the traditional dealership model for sales and deliveries. Tesla’s rivals have been forced to close most of their vast retail networks as governments imposed restrictions on businesses and people’s movement to slow the spread of COVID-19.
Tesla adapted its approach to each market’s rules. After the lockdown started in Italy, for example, all cars were home delivered at no additional cost to the customer; in France, it is possible for customers to travel for professional activity, including in some cases taking delivery of a new car.
Tesla mainly delivered in March cars ordered in January and February, with very few residual orders from December.
Tesla is promoting its “touchless deliveries,” which it says lets customers “take delivery of their vehicle in a seamless and safe way.”
Rather than having to physically go to a dealership to take delivery of their cars — which might not be possible or desirable during the coronavirus outbreak — buyers can unlock their cars at a delivery parking lot through a smartphone app. They can sign paperwork that has been placed inside the car and then drop off the documents in a secure box.
Buyers are also able to place orders online.
Tesla’s delivery procedures allow the automaker to have a broad geographical reach even though it has few physical dealerships. Despite having only five stores in Italy, Tesla in March registered cars in 73 different Italian provinces (out of 107), according to an Italian Economic Ministry database.
According to the French newspaper La Tribune, Tesla sales in France were also boosted by orders received at the end of 2019 as customers rushed to profit from a 6,000-euro bonus on certain battery electric models; the bonus was reduced to 3,000 euros starting Jan. 1. Tesla sales jumped in the Netherlands at the end of last year for a similar reason.
Tesla sales fell sharply in some northern European markets. Registrations in Norway fell 81 percent in March to 1,131 units, more than double the market decline; the Netherlands saw a 37 percent drop to 1,395 units in a market down 23 percent. In both markets, Tesla sales in March 2019 were boosted by the first deliveries of the Model 3, for which there was a significant pent-up demand.
It is not clear whether Tesla can sustain its pace of European registrations. Production at the automaker’s plant in Fremont, Calif., was suspended on March 23 as directed by the U.S. authorities.
