Inventory isn't that high if you look at it by days of inventory instead of units.
It was higher in Dec 2022 than it is now in terms of days inventory for Model 3.
Yeah, and what happened in December? Remember?
A massive round of price cuts to stimulate demand.
Interestingly, it looks like the price cuts had the desired effect, for about 4 months.
And now the demand has fallen behind production, yet again. And the inventory is building up once again.
Which would suggest that Elon had misled during the last quarterly Q&A, when he insisted that demand was exceeding production levels.
I do think Tesla has too few models. Demand looks best at peak demand for every specific model.
I don't know if the most critical problem is lack of model diversity (CT sales would definitely help).
The sales of EVs are continuing to grow 54.5% YoY in the US in 2022, while Tesla's market share has declined to 50.6%. That's still 1/2 of the market, but down from 70+% in years past.
In 2022, US EV sales grew 54.5% YoY, according to Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. BEVs comprised 80% of total EV sales
www.counterpointresearch.com
For one thing, more competition is good for the consumer (us).
For another, years of stale products and poor customer service reputation are likely taking a toll on Tesla brand reputation and ability to generate demand for its products.
Either more price cuts will be required, or an investment into Service Center quantity and quality.
One of the two is distinctly easier to implement than the other.
a
teslamotorsclub.com
