Switzerland Weighs Restrictions On EV To Conserve Energy - Could It Impact Tesla's Ambitions? - Tesla (NASDAQ:TSLA)

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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