Later this month, Tesla Motors will open its European Distribution Center in Tilburg, Holland, and will start stocking the stocking the site with Tesla Roadster and Model S parts as it prepares to start distribution in continental Europe next year.

The 200,000-square-foot factory will support about 50 jobs. Production of the European left-hand-drive versions of the Model S all-electric sedan will start next March. Tilburg is about halfway between Amsterdam to the north and Brussels to the south. Check out Tesla's press release below.

California-based Tesla is looking to ramp up sales of the Model S, which started production earlier this year. The car won the Motor Trend Car of the Year Award last month.

In November, Tesla also announced an increase in the price for the Model S for next year by $2,500 for US customers to a base of $59,900 and a top-end maximum of $94,400. Since no European price had been set for the Model S, anyone in Europe who places an order before the end of the year will get 1,700 euros (or the local currency equivalent, roughly $2,500 US) off that price.
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Tesla Motors Announces Major European Distribution Center in the Netherlands

PALO ALTO, California and TILBURG, Netherlands, December 12, 2012 /PRNewswire/ --

New facility will serve as final Model S assembly point, vehicle distribution hub and regional service center

As a key step towards beginning worldwide distribution of Model S, Tesla Motors announced today that it will begin operations this month at its new European Distribution Center in Tilburg, Netherlands. This new facility will serve as Tesla's European service and parts headquarters, as well as the final assembly and distribution point for Model S vehicles sold in Europe. General production of European left-hand drive Model S is planned to begin in March 2013.

Tesla's new 18,900 square meter facility is centrally located to enable efficient, timely and cost effective operations throughout Europe. Starting this month, the new distribution center will begin stocking parts for both the Tesla Roadster and Model S. In addition to parts warehousing, Tesla plans to utilize this facility for vehicle importing operations, final vehicle assembly and distribution, service headquarters, technical training operations, parts remanufacturing, collision repair and more. The new Tesla European Distribution Center will lead to the creation of approximately 50 jobs in the next few years.

Tesla's decision to locate the new European Distribution Center in Tilburg is the result of almost two years of on-going cooperation between Tesla, BOM Foreign Investments, NFIA (Netherlands Foreign Investment Agency), CBRE Group, Inc. and the City of Tilburg.

About Model S

Model S is the world's first premium sedan built from the ground up as an electric vehicle and has been engineered to elevate the public's expectations of what a premium sedan can be. At the heart of Model S is the proven Tesla powertrain, delivering both unprecedented range and a thrilling drive experience. With a rigid body structure, nearly 50/50 weight distribution and a remarkably low center of gravity, Model S offers the responsiveness and agility expected from the world's best sports cars while providing the ride quality of a luxury performance sedan. Model S has received many of the industry's most prestigious awards and accolades during its first year on the market.

Model S offers multiple battery options that set the benchmark for electric driving range. All batteries use automotive-grade lithium-ion cells arranged for optimal energy density, thermal management, and safety.

Without an internal combustion engine or transmission tunnel, the interior of Model S has more cargo space than any other sedan in its class and includes a second trunk under the hood. The Model S interior features a 17 inch in-dash touchscreen with Internet capabilities, allowing for streaming radio, web browsing and navigation.

About Tesla

Tesla's goal is to accelerate the world's transition to electric mobility with a full range of increasingly affordable electric cars. California-based Tesla designs and manufactures EVs, as well as EV powertrain components for partners such as Toyota and Daimler. Tesla has delivered more than 2,400 Roadsters to customers worldwide. Model S, the world's first premium sedan to be engineered from the ground up as an electric vehicle, began deliveries to U.S. customers in June of this year. Tesla has already received more than 13,000 reservations worldwide for Model S.

Individuals interested in employment at the Tesla European Distribution Center in Tilburg should send resumes and inquiries to tilburgrecruitment@teslamotors.com.

Interested in keeping up with Tesla Motors?
For more information on Tesla Motors and its products, please visit: teslamotors.com
For more information for Tesla Motors investors, please visit: ir.teslamotors.com
For the latest information from Tesla Motors, including press releases and the Tesla blog, please visit: teslamotors.com/press

Forward-Looking Statements

Certain statements in this press release, including statements regarding the plans for the new Tesla European Distribution Center, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings.


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    • 1 Second Ago
  • 35 Comments
      Spec
      • 2 Years Ago
      Nice. I presume most of the parts are still built in California and it is just final assembly in Europe. So, some USA jobs exporting things to Europe. Cool.
        Rotation
        • 2 Years Ago
        @Spec
        Yeah, I presume this is assembly from CKDs.
        Peter
        • 2 Years Ago
        @Spec
        Frankly my dear Scarlet I don't care if the glider is made by say Lotus in England and shipped for assembly to some place in the states... wait a minute Anyway, the important thing is to have a viable EV company that can grow in volume and profitability, and have business people work on how best to do it.
        Chris M
        • 2 Years Ago
        @Spec
        The batteries come from Panasonic, and some of the small components come from other suppliers, but I see no reason why they couldn't build the frames and body parts right there in Holland. Aluminum and other raw materials are readily available, as is the manufacturing expertise needed. The main reason for opening another production facility is to reduce shipping costs, and it wouldn't reduce costs to ship in all the major parts for assembly only.
      me
      • 2 Years Ago
      I luv the car but are not most cars in Europe right hand drive??
      Reggie
      • 2 Years Ago
      Tesla cars will sell very well in Europe, smart move from Tesla.
      bluepongo1
      • 2 Years Ago
      HH/SG I meant to be inclusive to the fall/ winter holidays. I'm not a Christian but I have family and friends of many faiths and for the record politically I'm a greenie. I will upon learning preference wish you and every Christian a Merry Merry Christmas!!!! @ EZEE
      Marcopolo
      • 2 Years Ago
      @ Grendal Interesting to see what impact 400 on the used car market an additional 100 or so Roadsters will make. ( I realize that not all the 400 R cars will be trade-ins) . Still some must be, and the high prices for pre-owned cars will enhance Tesla's reputation.
      NotTarts
      • 2 Years Ago
      It's a distribution centre, not a production facility. Producing the vehicle at Fremont requires almost 1000 workers, so there's no way they could do that in Holland with about 50 employees. My guess is that the entire vehicle will be assembled and tested in California, then shipped over to Tilburg where they handle the deliveries to customers. Nothing else makes sense given the small size of the workforce.
      Nick Kordich
      • 2 Years Ago
      The main reasons for manufacturers to open another production facility are currency stabilization and circumventing import duties, not shipping. As a zero-emission vehicle, the Model S faces reduced tax burdens and import duties through much of Europe already. Assembly is not manufacturing. Manufacturing at the Tesla plant in Fremont is carried out with massive dies, some weighing 40 tons, injection molds, and expensive computerized mills and welding robots. Right now, Tesla's far from using their factory to its manufacturing capacity, so it'd be absurd for them to spend tens of millions on redundant equipment in a European factory. Assembly is integrating parts from suppliers with your own, and Tesla's used parts from Daimler, most notably, so save money by using off-the-shelf components. Assembling these parts in Europe means not having to ship them to the US, then back as part of the assembled car. While there is some shipping expense, the savings may be greater in reducing the time between buying the third-party's component and realizing the revenue from it - time actually can be money. It also gives them greater flexibility in sourcing components. They can start off with European supplied airbags, head/tail lights, and tires/wheels, then by virtue of having the assembly facility, they have the option of selecting a European supplier for wholly pre-made seats with heating and power adjustments that they just need to install. Or, if that supplier doesn't pan out, they can fall back to shipping American sourced seats. I don't know how much of Tesla's delays in ramping up production this summer/fall were due to suppliers, but the flexibility of choosing American or European suppliers for their European cars has to be a nice feature in Tesla Motors' eyes.
      Tweaker
      • 2 Years Ago
      So we are left with plenty of questions here. How much of the car will be "assembled" in the Netherlands? How many cars could 50 people "assemble" per year? How could annex "assembly" possibly be profitable?
      brotherkenny4
      • 2 Years Ago
      Anyone know what the total number of Ss delivered is? They at one point said that 7000 was where they would break even and start to be profitable, and obviously that has to be a moving target, since indirect cost stay at a flat rate of accumulation, but still, as they approach 7000 units they must be getting close to independently viable economically. It's a weird time. When was the last time that there was a new and sustainable car company in the US. I think it really points to the failure of the established companies to respond to certain customer segments. It is pretty obvious that they would rather just use television commercials to herd the sheep, rather than provide value to customers.
        Grendal
        • 2 Years Ago
        @brotherkenny4
        We won't know for certain until they post their quarterly numbers. I'd guess they have over 2000 delivered now. 1000 Signatures, 50 Founders cars, 400 R cars (Roadster owners buying an S), and 400 to 500 General Production 85 kWh battery pack cars would be my guess at this point. At full production they are building 80 cars a day. As far as I can tell from all the postings on TMC full production is really happening. They have contacted people with reservations as high as 11,000 (with the 85 kWh pack) that their car will be ready soon.
        Roy_H
        • 2 Years Ago
        @brotherkenny4
        I believe that was 7000 cars/year. I think that represents break even point for manufacturing costs and does not include development costs. That works out to be only 140 per week and I think they are well past that now.
      Grendal
      • 2 Years Ago
      Elon Musk's Solar City's IPO happened today. It IPO'd at $8.00 and finished the day at $11.79. It was a good day if you bought in early for a 50% increase in your money. I didn't. On the Tesla front, the stock tumbled $2.00 to $33.00 and then recovered at the end of the day to finish at $33.61. Tesla's momentum seems to be building nicely. Their current bottleneck is delivery. They will very likely hit their end of year number for deliveries and be ahead of the game for number of cars built. They are soon delivering the Canadian Signature cars. There are now hundreds, if not over a thousand, general production cars on the road. https://www.youtube.com/watch?v=eWn22mf2VAo is a video of the reasoning behind the Model S winning the MTCOTY.
        Tweaker
        • 2 Years Ago
        @Grendal
        Where did you get that they would hit their production and delivery targets? It's not even close. Not that it will kill them but let's keep the facts straight, they will deliver less than 3,000 of the 5,000 target.
          Grendal
          • 2 Years Ago
          @Tweaker
          Tesla reduced their 5000 target at the beginning of last quarter: http://gigaom.com/cleantech/elon-musk-tesla-has-made-it-through-the-valley-of-death/ "The company, which delivered the first Model S in June this year, now expects to deliver 2,500 to 3,000 Model S in the fourth quarter and over 20,000 in 2013." So as I posted, Tesla should hit that target number, but yes they are off from their old numbers. At full production they should easily hit next years 20K cars produced. I believe they are now going to try and exceed that number due to increased demand. They have 15,580 reservations as of 12/09 with an average of about 60 per day.
        Rob Mahrt
        • 2 Years Ago
        @Grendal
        SCTY really opened to the public at ~$10.5, $8 is the price the under writers pay for the stock, then they turn around and sell it at an instant 25% return, yay capitalism. So, average investor, day 1, getting in right at open made about 12.2% and another 1.39% the next day... I got in at 11.29, still a pretty good open.
          Grendal
          • 2 Years Ago
          @Rob Mahrt
          You're up a buck. Good call.
      paulwesterberg
      • 2 Years Ago
      EZEE, EVnerdGene: Partisan trolls in da hizzouse!
      EVnerdGene
      • 2 Years Ago
      OK; an un-Merry Christmas to you paulwesterburger.
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