Gasgoo News According to foreign media reports, Tesla is advancing its business deployment in Baltic countries by recently establishing new subsidiaries in Estonia and Latvia. Corporate records indicate that Tesla registered Tesla Latvia SIA on November 7, 2025, and Tesla Estonia OÜ on December 16, 2025, both wholly owned by Tesla International B.V.

This move represents Tesla’s latest European expansion effort, following its earlier entry into the Lithuanian market. Notably, both newly registered entities are categorized under “motor vehicle maintenance and repair” rather than pure vehicle sales, suggesting Tesla may prioritize service center setups over immediate retail operations in these countries.

When entering Lithuania, Tesla adopted a similar strategy: first establishing a local legal entity, followed by pop-up store openings within weeks and permanent service facilities within months. If replicating this model, Tesla’s service and retail operations in Estonia and Latvia are expected to commence in the first half of 2026.

The board members of both subsidiaries include Tesla’s regional and financial executives responsible for European market expansion, indicating the company’s organizational readiness for its new market strategy. Tesla has yet to announce specific locations or timelines for service centers or retail stores in the region.

In 2025, Tesla experienced a decline in sales in the European market. To revitalize regional performance, the company is accelerating the rollout of more affordable models, including the newly launched base versions of Model 3 and Model Y, to lower the entry barrier for consumers. Simultaneously, Tesla is advancing the certification process for its Full Self-Driving (FSD) system in Europe. By Q4 2025, the company had launched FSD test-drive programs in multiple European countries, allowing users to experience the system firsthand. Recent updates in early December revealed that the program would be extended in select European regions until the end of March 2026.

Additionally, Tesla’s Robotaxi project, Cybercab, is currently in pre-production testing. A photo of a Cybercab being transported on a trailer recently circulated online, sparking speculation about its testing progress.

On the financial front, Morgan Stanley analyst Andrew Percoco, who recently took over Tesla equity research from Adam Jonas, raised his price target from 410 to 425 in his inaugural report, adjusting the rating to “Neutral.” In his commentary, Percoco highlighted Tesla’s significant lead in autonomous driving technology.