In what appears to be an end-of-quarter drive to sell off inventory, Tesla’s US inventory has fallen to a new low.
Matt Jung, who analyzes Tesla inventories, reports that the automaker’s US new car inventory has fallen to only 1,200 vehicles. Compared to the previous month, when inventory levels were over 800, this is a huge decrease.
Tesla likely gave discounts on already-purchased new inventory automobiles, which caused the inventory to fall. For instance, a Model 3 version in California is available for $42,060, which is $2,680 less than the cost of newly ordered vehicles.
In order to reach its sales goals, Tesla is known to give delivery pushes at the conclusion of each quarter. This happens frequently, especially when the automaker is having trouble with production.
Tesla is dealing with a lot of difficulties in the current quarter, such as supply chain delays and growing expenses. However, the business is also stepping up manufacturing at its brand-new factories in Berlin and Austin, Texas.
Whether Tesla will be able to hit its sales goals for the quarter is still up in the air. The decrease in inventory, however, indicates that the corporation is moving closer to clearing its backlog.
Here are a few potential causes for the decline in Tesla’s inventory:
final push of the quarter. At the conclusion of each quarter, Tesla is rumored to provide discounts on its current inventory of vehicles in an effort to reach its sales goals. This may be the case in the current quarter given the difficulties Tesla is experiencing, such as supply chain interruptions and escalating expenses.
increasing opposition. Rivian and Lucid Motors are two recent entrants into the competitive electric vehicle market. Tesla’s sales may be under pressure as a result, which could boost inventory.
forthcoming Model 3 update. According to rumors, Tesla is aiming to update the Model 3, which could result in additional inventory as the carmaker gets rid of its older versions.
What the long-term effects of Tesla’s inventory drop will be cannot yet be determined. It is evident that the business is having some difficulties in the current quarter, though.