Tesla Motors, Inc.’s (TSLA - Free Report) Model S vehicle has a new assembly plant in Europe as the company inaugurated its 18,900-square meters Tilburg Assembly Plant in Netherlands. The plant will be the final assembly and distribution center for all Model S cars to be marketed in Europe. The plant will also serve as the European service and parts headquarters of Tesla. The automaker selected this location because of its good connectivity with all important markets via rail and motorway network.
The Vice Governor Economic and International Affairs of the Province of Brabant and Alderman Economic Affairs of the Municipality of Tilburg graced the occasion with their presence. Some of the Dutch, Belgian, French and German customers were also handed over their cars from the new facility.
Tesla’s Tilburg facility is centrally located with good transportation infrastructure. It is also located close to the port of Rotterdam. The central location will allow the automaker to transport parts anywhere in the continent within 12 hours. Thus, the facility ensures efficient, cost effective and time saving operations in Europe.
Tesla's European operation is expanding rapidly, and the company will open about 15 new stores and service centers in the next few months. Recently, the company announced the opening of its first retail design store in Brussels, Belgium. The company also plans to expand in Europe with retail design stores in London and Amsterdam. The company expects that the rising demand for Model S, together with new store openings, will boost the cash inflow from European operations.
Recently, Tesla Motors also announced its expansion to China. The automaker started the reservation of Model S on a Chinese website. While Model S is an attraction for the affluent class, it is also expected to be popular among the environmentally conscious consumers.
Tesla designs and manufactures electric vehicles and electric vehicle power train components for partners including Toyota Motor Corp. (TM - Free Report) . Tesla anticipates delivering little over 5,000 Model S vehicles in the third quarter of 2013 and 21,000 vehicles globally in 2013.
Tesla currently carries a Zacks Rank #3 (Hold). Other major automobile stocks worth considering are Nissan Motor Co. Ltd. (NSANY - Free Report) and Volkswagen AG (VLKAY - Free Report) . Both these stocks carry a Zacks Rank #1 (Strong Buy).