Why are Tesla cars stranded?

Why are Tesla cars stranded?

Tesla is holding a real sale to clear inventory, especially in markets outside the United States. But why is it that the reference brand in electric cars and autonomous driving has so many cars stranded?

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There is, in fact, no single reason to explain the phenomenon that was accentuated in 2022 and became a concern for Elon Musk’s automaker in 2023. Tesla has been affected by a number of factors, and they have directly reflected on sales, resulting in an ever-increasing yard full of cars.

Before listing the reasons why Tesla cars are stranded, however, it is necessary to mention a fact that is literally the opposite of this whole scenario. According to a report obtained by The New York Times, Tesla sold 1.3 million cars in 2022, 40% more than the previous year. And even so, he was left with a stranded stock. And now let’s understand why.

1. Supply greater than demand

One of the reasons Tesla cars are stranded is basic math. Tesla produced, especially at the plant in Shanghai, China, more cars than the market wanted to buy. The company expected to grow 50% in sales in the year, but the high was 40%. Result: At least 10% of the cars produced go without a garage to call their own.

2. Increased competition

Despite good sales in 2022, Tesla has lost an important piece of the electric car market to rivals that, before, did not scare it so much. BYD, for example, surpassed Elon Musk’s automaker in the number of registrations, while Volkswagen, General Motors and Ford climbed steps due to the experience in producing cheaper cars, a requirement of current consumers.

3. Increase in interest rate

The third point that contributes to Tesla cars being stranded is the fault of the US government’s economic team. The increase in the interest rate significantly harmed sales of the electric brand, which was forced to make a sale and cut prices to try to clear the stock.

4. Dislike Elon Musk

The fourth and final reason Tesla cars are stranded would be linked to the company’s CEO, Elon Musk. In a world that today, more than ever, is politically divided between right and left, those who do not sympathize with Musk encourage boycotts of the brand’s cars.

The finding was made by Daniel Ives, an analyst at Wedbush Securities, to The New York Times. According to Ives, Musk “needs to stop focusing so much on Twitter’s problems and focus his energies on Tesla.” Will the businessman, one of the richest men on the planet, follow the advice?

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Tesla Gigafactory