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Tesla's market share in Europe might rise now that European governments approved an ambitious climate change plan. Leaders from the 27 nations in the European Union met in Brussels to discuss a recovery fund that would help rebuild their economies after the global pandemic.
After strenuous discussions, the EU approved the recovery fund. It included a climate change plan with a €500 billion (US$577 billion) budget, reported Bloomberg. The EU's newly approved climate change plan takes nearly a third of its recovery fund.
The stimulus plan has a seven-year budget worth €1.8 trillion or US$2 trillion. The climate change plan's budget of more than €500 billion ($577 billion) will go towards electric car adoption, renewable energy infrastructure, and developments in agriculture. The funds may also be used to develop clean energy resources, stimulate the market for emission-free cars, invest in innovative technology, and promote energy efficiency.
"Never before, has so much of an EU budget been allocated to combating climate change. The commitments to climate action and environmental protections are important and necessary, but the distributions of funds must reflect that," said Svenja Schulze, Germany's Environment Minister.
Tesla Continues To Increase It’s Market Share In China & The Rest Of The World https://t.co/Wr7WKdJbLa pic.twitter.com/NWwM1Ms0Nf
— Tesmanian.com (@Tesmanian_com) July 14, 2020
The EU's climate change plan would give Tesla an opportunity to increase its market share in Europe. Tesla's growth in the region has steadily increased since it released the Model 3 last year. Now that more EU nations will be pushing harder for EV adoption and the use of renewable energy, the market for green vehicles and power sources has grown. And Tesla can to grow with it.
Tesla Giga Berlin's construction on the Model Y production building has been progressing swiftly. Gigafactory Berlin appears to be on schedule to start manufacturing and delivering the Model Y--Tesla's most disruptive vehicle yet--in 2021 all across Europe. Elon Musk once predicted that the Model Y could outsell the Models S, 3, and X combined. With the Model 3, the Model Y, and the EU's renewed determination to be climate-neutral, more Europeans may consider Tesla's vehicles and other products.
Tesla Energy may benefit from the EU's climate change plan as well, with its energy storage systems and solar products. The company's Powerwall, Powerpack, Megapack, and solar products could help the EU transition to renewable forms of energy.
The EU hopes to be the world's first climate-neutral continent by 2050. With its green initiative, the 27 members of the EU would be far ahead of other nations, like the US, China, and India, in the fight against climate change, but the EU must put its plan in action first.
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