Elon Musk Mourned Tesla's Lack Of Market Share In Japan In 2024: EV Giant To Now Halt Sale Of New Model S, X Vehicles In Country

On Thursday, American EV giant Tesla Inc. TSLA said it will stop taking custom orders for new Model S and X vehicles in Japan after April 1.

What Happened: The production of the higher-end Tesla cars for the Japanese market will end on March 31 and after April 1, the company will only sell stock or used vehicles in the country, Tesla said in a post on social media platform X, formerly Twitter. It added that the company will no longer accept custom orders for new Model S and X vehicles starting in April.

“This period until production ends will be your last opportunity to purchase a new Model S or Model X in Japan, so if you are considering purchasing one, please place your order as soon as possible,” the company said.

Tesla did not immediately respond to Benzinga‘s request for comment on the reasons behind this decision.

Why It Matters: In January 2024, Tesla CEO Elon Musk mourned the company's lack of market share in Japan, terming it "remarkably low."

"Japan is the third-largest car market in the world of any country. So we should at least have a market share proportionate to, say, other non-Japanese carmakers like Mercedes or BMW, which we do not currently have," Musk then said while adding that there is a lack of awareness of Tesla in the country.

The Model S and X are Tesla’s more premium cars. While the Model S starts at 12.67 million yen in Japan, the Model X starts at 14.17 million yen.

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