Photo: Tesla | Edited
Tesla reservation holders in right-hand-drive markets are in for a brutal awakening as Tesla announced the cancellation of the RHD Model S and Model X. Customers in Japan and the UK will still receive the Model S and Model X but in the LHD variant.
The Tesla Model S and Model X received several updates in the past two years, but the refreshed models are far from being a success story. Starting their career with the controversy surrounding the yoke steering, they were later impossible to get outside the United States. A recent update brought the Hardware 4 computer, another controversial feature still missing software support.
Tesla flagships didn't show significant sales, and the EV maker tried to compensate with price cuts and incentives such as free Supercharging miles. Still, the lackluster sales are mostly Tesla's fault, the carmaker lacking a sales strategy. Many reservation holders waited years for a Model S or Model X. Only recently, the two luxury models at the top of Tesla's lineup started deliveries in Europe and other overseas markets. In other markets, they will never arrive, disappointing those who waited in vain.
Tesla officially admitted that it has no plans to produce right-hand-drive versions of the two models. After removing the possibility of ordering these variants in Australia and New Zealand, Tesla sent letters to existing reservation holders telling them their cars would never arrive. Some placed their orders more than two years ago when the pre-refresh cars were shipping in those markets. Tesla cited "recent changes to the vehicle program" as the reason for scrapping the RHD variants.
According to the letters Tesla sent to those who placed a deposit, they would be fully refunded and get a credit toward a new Model 3/Model Y order. The credit is 3,000 AUD in Australia or 3,200 NZD in New Zealand, both translating into about 2,000 USD. Customers in the UK can choose between canceling their orders and receiving a 2,000 GBP (2,500 USD) toward a Model 3/Y order or buying a left-hand-drive vehicle from the inventory.
Tesla also started selling the LHD versions of the Model S and Model X in Japan. Like in the UK, Tesla's webpage has been updated to state that the vehicles available for sale are left-hand drive. We're sure Tesla would've wanted to sell LHD versions in other markets, such as Australia, New Zealand, or Hong Kong. The local regulations don't allow selling LHD vehicles, though. Still, we don't think selling LHD vehicles in these countries could be more successful than selling them in LHD markets.
Tesla's move is interesting, although it shows a level of desperation. Lackluster sales of the two models impact the cost structure, which makes them less viable in the long term. The Model S and Model X are a tough sell even in LHD markets, and there will probably be very few customers in Japan and the UK for them. Just shipping them from the US in such small numbers would cost Tesla a fortune. Time will tell, but the market for $100,000+ vehicles is shrinking, and Tesla is not among the favorites.
Tesla flagships didn't show significant sales, and the EV maker tried to compensate with price cuts and incentives such as free Supercharging miles. Still, the lackluster sales are mostly Tesla's fault, the carmaker lacking a sales strategy. Many reservation holders waited years for a Model S or Model X. Only recently, the two luxury models at the top of Tesla's lineup started deliveries in Europe and other overseas markets. In other markets, they will never arrive, disappointing those who waited in vain.
Tesla officially admitted that it has no plans to produce right-hand-drive versions of the two models. After removing the possibility of ordering these variants in Australia and New Zealand, Tesla sent letters to existing reservation holders telling them their cars would never arrive. Some placed their orders more than two years ago when the pre-refresh cars were shipping in those markets. Tesla cited "recent changes to the vehicle program" as the reason for scrapping the RHD variants.
According to the letters Tesla sent to those who placed a deposit, they would be fully refunded and get a credit toward a new Model 3/Model Y order. The credit is 3,000 AUD in Australia or 3,200 NZD in New Zealand, both translating into about 2,000 USD. Customers in the UK can choose between canceling their orders and receiving a 2,000 GBP (2,500 USD) toward a Model 3/Y order or buying a left-hand-drive vehicle from the inventory.
Tesla also started selling the LHD versions of the Model S and Model X in Japan. Like in the UK, Tesla's webpage has been updated to state that the vehicles available for sale are left-hand drive. We're sure Tesla would've wanted to sell LHD versions in other markets, such as Australia, New Zealand, or Hong Kong. The local regulations don't allow selling LHD vehicles, though. Still, we don't think selling LHD vehicles in these countries could be more successful than selling them in LHD markets.
Tesla's move is interesting, although it shows a level of desperation. Lackluster sales of the two models impact the cost structure, which makes them less viable in the long term. The Model S and Model X are a tough sell even in LHD markets, and there will probably be very few customers in Japan and the UK for them. Just shipping them from the US in such small numbers would cost Tesla a fortune. Time will tell, but the market for $100,000+ vehicles is shrinking, and Tesla is not among the favorites.
I was sent two separate emails by two followers confirming this. One lives in mainland Australia and one lives in New Zealand. Super disappointing for the individuals that waited years for these vehicles.
— Sawyer Merritt (@SawyerMerritt) May 12, 2023
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