Switzerland Weighs Restrictions On EV To Conserve Energy - Could It Impact Tesla's Ambitions?

Switzerland Weighs Restrictions On EV To Conserve Energy - Could It Impact Tesla's Ambitions?
  • Switzerland could be the first to impose driving bans on e-cars to restore energy security, as media reports quoted a draft regulation on restrictions and prohibitions on the use of electrical energy
  • The paper restricted the private use of electric cars for essential journeys like professional practice, shopping, and doctor visits, and a stricter speed limit on highways, Spiegel Mobility reports.
  • Switzerland derives most of its electricity from hydropower. However, it also imports electricity from Germany and France.
  • Also Read: AWS Launches Infrastructure Region in Switzerland
  • The Russia-Ukraine war further aggravated the energy crisis in Europe.
  • The restrictions in e-mobility are likely for escalation level 3. Before that, austerity measures would take effect in private households.
  • Germany has also set up an energy-saving plan to reduce electricity consumption in the country.
  • The energy crisis could lead to a wave of bankruptcies among small- and medium-sized businesses (SMEs) in Switzerland, according to a survey by European payment services provider Sumup.
  • According to Rudolf Minsch, chief economist of Economiesuisse, about 20% of the 35,000 companies in the Swiss market have no hedge on energy prices from next January, leaving them vulnerable to price volatility.
  • Tesla Inc's TSLA Model 3 was the best-selling vehicle in Switzerland in 2021
  • A prolonged restriction on EV usage could hamper Tesla's growth in Europe.
  • Forecasting a drop in demand, Tesla plans to lower production at Giga Shanghai as soon as this week, according to a report.
  • Price Action: TSLA shares traded lower by 4.64% at $185.85 on the last check Monday.

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