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Tesla Faces Inventory Crisis as Demand Slows
Gone are the times when Tesla sold every car it could build fresh out of the factory. We’re now at the point where the company has actually made too many vehicles. The automaker is obviously aware of this, slashing prices on popular models like the Model Y as inventory piles up. Buyers aren’t biting though, and now the automaker has so much unsold inventory that, as Sherwood News reports, they’re being stored in lots that can be seen from space.
Tesla’s Excess Inventory
In Q1 2024, Tesla reported that it made 433,371 vehicles. Of those, 386,810 were actually sold. This means the automaker has an extra 46,561 vehicles it didn’t sell. This can be blamed on the overall EV sales slowdown. Tesla’s Chief Financial Officer Vaibhav Taneja stated that the company’s oversupply issue was due to a mismatch between builds and spending on AI computers.
“The primary driver of this was an increase in inventory from a mismatch between builds,” Tesla CFO Vaibhav Taneja said. “We expect the inventory built to reverse in the second quarter and free cash flow to return to positive again.”
Where Are the Unsold Teslas?
Using imagery from SkyFi, a satellite imagery marketplace, Sherwood discovered just where all those Teslas are being stored. Images taken of Tesla’s Texas Gigafactory show lots around the factory going from partially or nearly full to completely full in some cases. Tesla is also storing vehicles in other places around the country, like St. Louis’ Chesterfield Mall and even malls in cities like Moreno Valley, California.
While Tesla is still selling hundreds of thousands of cars, it would seem that the brand isn’t the hot seller it used to be. It raises questions about how long they can continue to accumulate unsold inventory before taking action.
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