Tesla has recently announced that it will no longer produce right-hand-drive versions of its Model S and Model X vehicles, causing frustration among customers who have been waiting years for delivery. The decision was made due to mechanical and logistical complexities, but many customers were caught off guard and have cancelled their orders. Some have even turned to rival car makers, such as Porsche and Mercedes, to fulfil their needs.
Tesla has attempted to address concerns about using left-hand-drive cars in the UK by offering test drives of left-hookers in London between 28 May and 30 June. However, some customers remain worried about the safety of overtaking in a left-hand-drive car. Dealerships have also been caught off guard by the decision, with some fearing that the new left-hand-drive models will lose a lot of money very quickly.
The decision is the latest in a series of moves by Tesla that have rocked the market for new and used electric cars. In January, the company slashed around £7000 off the price of the Model 3 and Model Y, followed by a further £4000 off the Model 3 two months later. These cuts depressed the values of not only used Teslas but also many competitor models. By April, values of EVs at 12 months old and with 20,000 miles were down 20%, and at three years and 60,000 miles down 25%.
Despite the frustration among customers, experts predict that the decision to stop imports of right-hand-drive Model S and Model X cars will have little impact on the appeal and values of cars currently registered. There are relatively low numbers of both in the UK, with just over 11,000 examples of Model S registered between 2013 and 2021 and less than 6500 Model X between 2016 and 2021. These figures pale into insignificance against the more than 90,000 Model 3s already on the roads and the more than 80,000 Model Ys, which will have been registered by the end of this year.
Dylan Setterfield, head of forecast strategy at Cap HPI, doubts that many left-hand-drive examples will be sold and expects that no right-hand-drive models will be registered since 2021. Martin Miller, founder of EV Experts, has also expressed his disinterest in stocking either model, citing inconsistent reliability and quality.
As Tesla’s decision sinks in, it is likely that more prospective buyers of new Model S and X cars may also reach the same conclusion. Despite the frustration among customers, the impact on the market for new and used electric cars is expected to be minimal.