Despite record production, Tesla is storing thousands of unsold vehicles. This phenomenon can be observed from space. The only solution ? Lower prices. And, it has already started. Tesla invented its own ecological bonus in Germany.
Satellite images don’t lie. In March 2024, a photo of the Gigafactory in Austin, Texas, shows hundreds of Tesla vehicles lined up waiting for buyers. This image is emblematic of a broader problem affecting several production sites, including the German factory in Grünheide near Berlin.
According to the magazine Jalopnik, Tesla built 433,371 electric cars in the first quarter of 2024, but only 386,710 were actually sold. This means that 46,561 vehicles are currently stored in parking lots, a mass of cars partially visible from space.
Most of these unsold cars are stored right next to the Gigafactory themselves. Tesla’s German factory in Grünheide currently has a large number of models in stock. There are, moreover, 100,000 electric cars waiting in Germany. Tesla even temporarily shut down its factory.
This situation raises questions about Tesla’s business strategy. Why does the company continue to produce so many electric cars if demand is not there? How does it plan to sell these thousands of unsold cars? As you imagine, Tesla will lower its prices. And it has already started.
Discounts at the end of the quarter
Tesla announced on June 8 a huge price drop in Germany: on the Model Y, Tesla is inventing its own ecological bonus of 6,000 euros. It is important to point out that there is no longer any assistance for purchasing an electric car in Germany.
Germany has followed the path of the United Kingdom, which has, for its part, completely eliminated the ecological bonus a few weeks ago. In France, the government has reviewed the operation of the ecological bonus by introducing an environmental score. However, the ecological bonus still exists on the Model Y.
This price reduction only concerns pre-configured vehicles, those which can be delivered very quickly (basically, those which are parked in car parks). This commercial strategy of discounts at the end of the quarter to boost sales is certainly questionable, because it can give the impression that Tesla’s electric cars are not worth their initial price. As you can already imagine, this price drop in Germany suggests a similar price drop in France in the near future.
Finally, Elon Musk confirmed that there will be no restyled Model Y in 2024. Which we can understand differently: don’t wait for the Model Y, it’s coming later, so consider buying a current Model Y. And, all this in a context of crisis for Tesla, which has laid off 10 to 20% of its employees.
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