Tesla is having a rough year, folks. Looks they are going to have a huge parking bill. Elon Musk announced that the next-gen platform and cheaper cars won’t be here until next year. Even the Robotaxi is delayed as Tesla needs more time to get the face of the driverless EV right.
With sales dropping, production has seriously outpaced demand, leading to a stockpile of unsold cars so massive that it can be seen from space!
Yes, from space! Here’s everything you need to know and see.
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Thousands of Teslas Parked in a Space-Sized Pileup
Parking lots at Tesla’s Fremont factory and various defunct malls are jam-packed with unsold cars. Thanks to SkyFi’s satellite images, we can see the enormity of this issue.
If satellite images aren’t convincing enough, there are videos from the ground showing these Teslas parked in defunct shopping malls and ports. Of course, the lot would be visible from the space but drone videos show the Tesla pileup much clearer.
Tesla produced a whopping 433,371 cars in the first quarter of this year but only managed to deliver 386,810 of them. Leaving around 47,000 extra Teslas hanging around with no known whereabouts. According to a report done by Sherwood, the number of parked vehicles is rising with time.
Rani Molla, a reporter for Sherwood, investigated Tesla’s declining sales. “EV sales in general have been slowing. They’re not going down, just not growing as fast,” Molla said on the Newsable podcast. Tesla’s reputation is also a factor.
A YouGov survey found Americans dislike Teslas unless they own one. Molla thinks Elon Musk’s divisive politics play a big role. Tesla said last quarter’s surplus was due to a mismatch between production and sales, but they expect sales to improve next quarter.
What’s Going on With Tesla?
So, why are there so many unsold Teslas? These are the top three reasons that we think Tesla is suffering the most:
- Market Saturation: People’s interest in fully electric vehicles has dipped significantly.
- Tough Competition: Cheaper electric cars from Chinese manufacturers are giving Tesla a run for its money.
- Economic Woes: The current economic climate makes people more cautious with their money.
This is the biggest production-demand mismatch in the company’s history, and it’s quite a sight. But how did this happen? We shall discuss the challenges Tesla is facing in detail.
Tesla’s Financial Fallout
This stockpile of cars isn’t just a logistical headache; it’s a financial one too. Tesla’s CFO, Vaibhav Taneja, mentioned that the company saw a negative $2.5 billion in free cash flow because of this mismatch. They’re hoping things will balance out in the next quarter, but it’s definitely a nail-biter for Tesla.
From Tesla's earnings call from Vaibhav Taneja: "We had negative free cash flow of $2.5 billion in the first quarter. The primary driver of this was an increase in inventory from a mismatch between builds and deliveries as discussed before, and our elevated spend on CapEx across… https://t.co/XvHC3jB0sQ
— Cern Basher (@CernBasher) April 24, 2024
Competition and Delays
With delays in launching new and cheaper models, Tesla’s strategy is under the microscope. Elon Musk’s focus on high-tech features and autonomous driving might not be enough to steer the company back on track.
Tesla’s competitors are taking advantage of this stumble. Traditional automakers and new players are winning customers by offering cool, cheaper alternatives with better ranges.
Changing Tides in Tesla’s Consumer Interest
People’s feelings towards electric cars and Tesla are shifting. Concerns about autonomous-driving systems, resale values, and the market’s stability are swaying buying decisions. More of this is happening because of the way people see Elon’s leadership.
This shift has big implications for Tesla’s sales and future growth.
In the U.S., it’s like a Tesla ghost town. Reports and videos show heaps of unsold Teslas gathering dust in places like the Gigafactory in Texas and a deserted shopping center in Chesterfield, Missouri.
The issue isn’t just in the U.S. Internationally, Tesla is facing similar problems. Unsold Teslas are piling up at ports in Australia and storage spaces around the Berlin factory. It’s a worldwide trend of too many cars and not enough buyers.
However, there are people on Reddit who see this “from space” story a bit differently. One user comments on the story saying every carmaker keeps an inventory some even have it for 100 days. Ford does. According to him, the amount is not even 25 days of inventory for Tesla and therefore is not that big of a problem.
Comment
byu/skididapapa from discussion
inelectricvehicles
Bottomline
Tesla’s mountain of unsold cars is a big problem that needs solving fast. Aligning production with demand, beating the competition, and winning back consumer trust is crucial. Problems with Cybertruck and the delayed launch of Robotaxi are already eating away at Tesla’s charm.
Can Tesla turn things around and keep its top spot in the electric vehicle world? Share with us what you think of the big pileup of Tesla vehicles, from space or a drone.
The car in my driveway is visible from space. The term has stopped meaning it’s a very large thing.