Tesla Poised to Begin Model 3 Sales in Europe

Tesla Inc. is on track to begin selling its Model 3 electric sedan in Europe in February, according to Bloomberg News.

The California EV maker has cleared most approval hurdles through RDW, the Dutch regulatory agency, and will receive full-car certification imminently, a source tells the news service. European Union rules enable approval by any member country to apply throughout the region.

Sales in China, where Tesla has begun taking orders, and Europe is a key step in the company’s aim to reach sustainable profitability. CEO Elon Musk says bolstering deliveries of all three Tesla models overseas will more than offset the hit to profits in the U.S. by the company’s decision to cut U.S. prices on the models by $2,000.

Tesla says it reduced prices in the U.S. to offset much of the drop in federal tax credits for buyers this year. The company’s cars qualified for a $7,500 credit through the end of last year, but that incentive has shrunk to $3,750 because Tesla’s cumulative sales have topped a 200,000-unit cap set by Congress for the incentive program.

But investor worries that the discount also may reflect greater-than-expected buyer sensitivity to price has triggered a 9% drop in Tesla’s stock price.