Declining Sales, Tesla Model Y Stocks Overflow

Tesla Model Y inventory in the United States is at its highest since the launch of the new model, indicating weak demand.

After a disastrous first quarter, shareholders attributed Tesla’s difficulties to the transition to the new Model Y, causing delivery delays and limited supply. While this has clearly affected the company’s performance, other demand issues have also emerged.

Tesla claims to have restored Model Y production to normal levels in record time. However, the lack of orders for this model is concerning. In early April, Tesla was able to deliver Model Ys in the United States on the same day, indicating an unrevealed hidden stock. Now, Tesla has started publishing new available configurations, confirming that there is no order backlog for this updated model.

There is a Tesla for everyone

In March, Tesla sold off the old versions of the Model Y. This Saturday morning, more than 100 vehicles are available on its American website, but this number may underestimate the actual stock, as Tesla offers limited configurations for the new model. In most major American cities, these models are available immediately.

Unlike in the United States, where no additional incentives have yet been introduced, Tesla quickly launched 0% financing offers for the new Model Y in China, initially planned until the end of April but extended until June 30. In France, the return of this 0% credit is also anticipated, which greatly benefited the manufacturer in 2024.

In Europe, Tesla faces even greater difficulties. Its sales are declining, and it struggles to sell older models. In France, the Propulsion and Long Range Propulsion versions are still scheduled for June, indicating that order books are struggling to fill up.

In the first quarter, Tesla produced approximately 30,000 more vehicles than it delivered, increasing its inventory by $1.7 billion. These figures reflect mounting pressure to sustain demand even after the introduction of the new Model Y.

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