Tesla seeks solutions in 'fragmented' Europe

Tesla Motors expects Europe to play a big part in its bid to reach an annualized production rate of 100,000 vehicles by the end of 2015, up more than threefold from last year. The challenge in Europe is the widely varying degree of support provided by governments to help promote electric vehicles such as Tesla’s Model S. The electric carmaker’s global sales boss, Jerome Guillen, discussed what the company is doing to become a key player in sustainable transportation with Automotive News Europe Correspondent Bruce Gain.

How is Tesla’s approach to Europe different than in the U.S.?

It’s a lot easier to set up shop in the U.S. In Europe we have to comply with a lot of different rules in different countries and create different kinds of networks. There are different languages and other regional things to deal with, which is the main difference. Europe is a more fragmented market than the U.S.

What are your ambitions in Europe?

Our overall goal is to accelerate the transition to sustainable transportation. We obviously want to be present in Europe. There are many different countries and rules to comply with, so we are putting in place the right infrastructure in every country to help with our growth. We are happy with the status quo of some countries where we are present, especially in Norway. In other countries we still have some things to put into place. This includes dealerships, service centers, superchargers to enable long-distance driving and also the right partnerships for financial products and insurance.

Which European countries are leaders in creating an EV infrastructure and which ones still have work to do?

We are a small company so we haven’t had a chance to develop a presence in all countries in the same way. We gave preference [to countries] where we already had the most demand. Norway was a good starting point. The Netherlands, Switzerland, Belgium, Denmark and Sweden are also countries where we’re doing extremely well. We already have the infrastructure in place in those countries thanks to our superchargers. In some markets we are putting the infrastructure in place so that people can try the car and then adopt it.

How crucial is a test drive to convincing a potential customer that your models are as viable as car with an internal combustion engine?

That’s the key factor. We can describe what it is like to have an electric car, but at the end of the day the best way is to really experience it for yourself. You need to see how smooth it is to drive, how quiet it is and how there is really no trouble with charging or range. People are nervous about it, which I understand, but there is no reason for it.

How important is the availability of public charging stations to the growth of EVs in Europe?

I think that 98 percent of all charging is done at home so we need to realize that people tend to drive or to travel near their homes. The beauty of electric vehicles is that you charge them at night, so that when you get up you’re electric vehicle is already charged. It’s much better than a gasoline-powered car in this respect. For those long-distance trips, there are many parking areas in countries in Europe where there are charging stations. Additionally, to further facilitate long-distance driving, Tesla is developing a network of superchargers, which are faster than anything else out there. We’ve built about 70 of those stations around Europe. They let you charge [enough to travel] 300km in 20 to 30 minutes, depending on how full the battery is when you start charging. But while you do not need the supercharger to travel long distances, it just makes it that much easier.

What is slowing EV growth in Europe?

It’s a new technology so there are many misconceptions. Whether they buy a Nissan Leaf or some other vehicle, it kind of doesn’t matter in the end. We still have to educate the public about how convenient electric is and how it’s not a hurdle to have an electric car. I think the biggest hindrance is the lack of knowledge.

What else can European governments do to promote EV adoption?

Governments can accelerate the transition to sustainable transportation, which will happen no matter what. We’re going to eventually run out of oil. It’s a finite supply so any effort to accelerate that transition will be welcome. There are some governments that are more proactive. In France, for example, the government offers generous incentives that can be applied to the price of an EV. The transition will happen, but it’s a matter of how fast governments can facilitate it.