Tesla is starting to replenish its Model Y inventory in the US after the design changeover, and it is ramping up incentives in China and Europe, suggesting that demand issues persist despite the new Model Y’s introduction.
After Tesla’s disastrous first quarter, shareholders attempted to blame the company’s issues on the transition to the new Model Y, which resulted in limited supply and buyers delaying their deliveries.
There’s no doubt that it impacted Tesla’s performance in Q1, but there were also other clear demand issues.
The automaker stated that it successfully resumed Model Y production to normal levels in record time. Therefore, Model Y supply can’t be blamed going forward and there are reasons to be concerned.
Earlier this month, we reported that Tesla was already able to deliver new Model Y on the same day in the US and was operating a sort of shadow inventory without actually listing new inventory Model Y.
Now, Tesla has officially started to add new inventory Model Ys in the US – confirming that it doesn’t have a backlog of orders for the updated vehicle:
It’s challenging to determine the exact number of new Model Y vehicles Tesla has in stock.
The website Tesla-Info tracks new vehicle listings in the US, but Tesla only lists configurations available in specific markets. After depleting the inventory of the older version of the Model Y in late March, Tesla is now listing 93 new Model Ys in the US:
However, for any of those listings, there could be several Model Ys in inventory, especially considering that Tesla currently has a limited number of options for the new Model Ys.
Tesla’s Model Y configurations also lists most configurations as being available today in most major US markets. This again points to Tesla having no order backlog for the brand-new vehicle.
At least, Tesla has yet to introduce incentives to sell the vehicle in the US, but it does in other markets.
We previously reported that Tesla quickly introduced 0% financing for the new Model Y in China. The incentive was initially scheduled to end this month, but Tesla has now extended it through June 30th, the end of the quarter.
Tesla is having even more issues in Europe, where its sales are crashing. The automaker is also struggling to sell some older Model Ys from its inventory.
Tesla produced about 30,000 more vehicles than it delivered in the first quarter, and it increased its inventory by $1.7 billion.
Electrek’s Take
Top comment by Leo
"The biggest EV automaker failing is not good for EV adoption, and Tesla is going in that direction."
I don't think it matters at this point.
A few years ago, Tesla going downhill would have been a disaster for EV adoption. They were simply the best EVs, and they certainly lit a fire under all the other automakers to push hard on EVs.
Today, nearly every automakers has EVs that are competitive with Tesla's vehicles (better in some areas, worse in others, but overall very similar). The fact that global EV sales have surged while Tesla sales decline shows that people are seamlessly switching to other models instead of giving up on electric. Even if Tesla disappeared tomorrow (they won't of course), I don't think it would really hurt the transition to electric.
Some people think that I’m happy to see this, but they couldn’t be more wrong. I’m just emphasizing it because recognizing the problem is the first step toward fixing it, and I want it to be fixed.
The biggest EV automaker failing is not good for EV adoption, and Tesla is going in that direction.
Tesla shareholders need to recognize that the Model Y refresh is not saving Tesla. Sales have been declining since last year, while electric vehicle (EV) sales continue to increase in most markets.
The combination of Elon Musk alienating half of Tesla’s potential customer base and Tesla’s stale lineup due to the focus on self-driving is resulting in an impossible situation for Tesla right now. Something needs to change.
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