Tesla’s newest challenge — Europe, China

For Tesla Inc. investors, the last year was all about whether the company could make enough cars at a stable rate. This year is going to be all about who would buy those cars.

As Tesla gears up to expand into Europe and China, investors and analysts are now focused on the demand trends experienced by the company in all of its markets. “Tesla has now shifted from a production story to a demand story,” Wedbush analyst Daniel Ives wrote in a note to clients on Monday, adding that Norway, the Netherlands, and Germany are front and center as the countries with strong pent-up demand for Model 3s in Europe.

“The big question for investors will be watching this Model 3 demand trajectory throughout Europe to gauge the pace of unit deliveries and how quickly can it reach the 100,000 units delivery barometer over the next 12 months in this key region, with China also a demand driver/potential wild card,” the analyst wrote.

Tesla chief Elon Musk visited Europe over the weekend, stopping in Norway, which is the company’s third-biggest market. Separately, China’s state-run newspaper Global Times tweeted on Monday that the first shipment of the Model 3 had arrived at the Port of Tianjin, ready for delivery to Chinese customers.

The electric vehicle maker had kicked off this year on a dull note after fourth-quarter deliveries slightly lagged expectations, followed by multiple price cuts for the Model 3 sedan in order to compensate for the gradual elimination of federal tax incentive.