Ton of Inventory

[dd564]

Hi all,
I'm located in the Minneapolis area and I've noticed there is a huge inventory piling up of Tesla's up here.
The dealer lot is not large, and they are parking them strategically to not block entrance way to shop doors, etc.

Also, nearby the dealer there is an auxiliary parking lot where they would keep a couple dozen cars, but in the last few months, that lot has gotten even more filled with cars. I drove into the lot a couple weeks ago to count the number of cars and I estimated it to be at least 100+.

I drove by the lot this morning, and now in that lot, they have a couple cars "double-parked" there as well.

Has anyone else seen this? It seems like this dealer is bursting at the seams with cars. Not sure if it's the end of a production cycle, or relocation of cars from other dealers since they have some auxillary space. Has anyone else seen this at a local dealer?

 

[Krugerrand]

What dealer? BMW? Porsche? Mercedes? GM? Those guys always have model year end sales at Christmas time.

 

[Super_Popular]

Yes it's not uncommon. What I am more surprised with is that you actually registered on this site to make that post.

Tesla has very little room at most location to store/work on cars.

It's always been like that.

 

[Dovetaildoc]

I was in the SC yesterday for a new key fob, and shared the waiting room with about 20 people waiting for their new deliveries. It was a madhouse, with employees and volunteers working as fast as they could, but everyone quite excited and talking to each other about a car they haven't even gotten yet. I smiled inside, remembering what it was like 4 years ago

 

[dd564]

Yes it's not uncommon. What I am more surprised with is that you actually registered on this site to make that post.

Tesla has very little room at most location to store/work on cars.

It's always been like that.

Sorry. My curiosity was getting to me and then I found this forum.
I don't have a Tesla, but knowing they are high priced cars, I found it odd that there would be about 150+ cars sitting around in the elements with snow on them. Probably about 40 at the dealer and 100+ on this other lot).

So a lot of dealers have cars sitting around? The other post in this thread sounds like people are waiting for them.
I'm not sure if these are new or previously owned, but they look new from what I can tell.

Didn't mean to upset anyone. Just curious.

 

[Electroman]

So a lot of dealers have cars sitting around?

Yes. There are probably thousands and thousands like this sitting in many dealers lots across US. Tesla is unable to sell them, but they have to move them somewhere. So they sell these to the dealers at a very low rate and close the books showing a lot of sale for the end of the quarter. They will probably be forced to buy them back later, but for now the numbers will come out good for Q4 pushing the stock higher. Thats the name of the game.

I heard on the internet (it has to be true) that someone was able to walk in and buy a brand new X for only $30k. Apparently they quoted $35K, but he haggled them down to $30K.

Atleast that my speculation. Hope that makes you happy.

If you don't believe me look at this thread. This lot has over a thousand Teslas all sitting there for weeks:

Found a LOT of Model 3's in a Tesla lot - Pictures inside

 

[Super_Popular]

Sorry. My curiosity was getting to me and then I found this forum.
I don't have a Tesla, but knowing they are high priced cars, I found it odd that there would be about 150+ cars sitting around in the elements with snow on them. Probably about 40 at the dealer and 100+ on this other lot).

So a lot of dealers have cars sitting around? The other post in this thread sounds like people are waiting for them.
I'm not sure if these are new or previously owned, but they look new from what I can tell.

Didn't mean to upset anyone. Just curious.

Well I am not upset, just found it odd that this is why you joined this forum.

Why don't you go to Tesla and ask them why they have so many cars sitting around when lot's of people are waiting for their cars, I would be curious on their response LOL

Wear body cam too.

 

[dd564]

Yes. There are probably thousands and thousands like this sitting in many dealers lots across US. Tesla is unable to sell them, but they have to move them somewhere. So they sell these to the dealers at a very low rate and close the books showing a lot of sale for the end of the quarter. They will probably be forced to buy them back, but for now the numbers will come out good for Q4 pushing the stock higher. Thats the name of the game.

I heard on the internet that someone was able to walk in and buy a brand new X for only $30k. Apparently they quoted $35K, but he haggled them down to $30K.

Atleast that my speculation. Hope that makes you happy.

I'm not looking to buy.

Not sure if you're being serious or not.

I'll see if I can grab a picture or two and post it.

 

[dd564]

Well I am not upset, just found it odd that this is why you joined this forum.

Why don't you go to Tesla and ask them why they have so many cars sitting around when lot's of people are waiting for their cars, I would be curious on their response LOL

Wear body cam too.

Sorry, I don't understand.
I'm not going to stop by to waste their time just to ask questions. I'm not in the market to buy.

I was just wondering if this is happening in other places or if there was some other explanation.

 

[mtndrew1]

Tesla works on quarterly sales accounting as opposed to most other automakers which function on a monthly sales basis.

In the beginning of the quarter Tesla builds cars and ships them overseas so that the cars are delivered by the end of the same quarter. Then the factory in California sends cars to the east coast of the US, midwest, and then finally west coast.

This system inevitably leads to all delivery centers having a pileup of cars to deliver at the end of a given quarter. This is always exacerbated by the end of year rush in which people buy cars to get the tax credit timed correctly. This phenomenon is especially dramatic this year, which is Tesla’s last having the full $7500 credit available.

In short, this situation is normal and part of their system of delivering cars (for better or worse) and is especially dramatic this year because of the expiring tax credit.

 

[dd564]

Tesla works on quarterly sales accounting as opposed to most other automakers which function on a monthly sales basis.

In the beginning of the quarter Tesla builds cars and ships them overseas so that the cars are delivered by the end of the same quarter. Then the factory in California sends cars to the east coast of the US, midwest, and then finally west coast.

This system inevitably leads to all delivery centers having a pileup of cars to deliver at the end of a given quarter. This is always exacerbated by the end of year rush in which people buy cars to get the tax credit timed correctly. This phenomenon is especially dramatic this year, which is Tesla’s last having the full $7500 credit available.

In short, this situation is normal and part of their system of delivering cars (for better or worse) and is especially dramatic this year because of the expiring tax credit.

So it's likely these cars will be delivered to owners by end of quarter (December end)?

 

[mtndrew1]

So it's likely these cars will be delivered to owners by end of quarter (December end)?

Yes, that’s what has happened every year and is likely what you’re seeing. Pass by the same location on January 5th and you’ll probably see a lot of pavement instead of cars.

 

[jbcarioca]

So it's likely these cars will be delivered to owners by end of quarter (December end)?

yes, almost a certainty. If you look at the same lots around January 6 or so, they may have lots of cars, but they'll mostly be used, tradeins.
By the way, Tesla actually ahs no dealers. What you see are Tesla-owned stores. This year a Federal Tax credit for electric vehicles is expiring for Tesla because of teh very high volumes they ahve sold. There is a mad rush to deliver as many cars as possible in the US before Dec 31, after which the tax credit will be only half what it is now. If you make a new trip to the showroom and go inside you'll see dozens of people taking delivery on their new cars and dozens more finalizing delivery details. Almost all of them will have made their purchase and payment arrangement online. Most of them, including me, only go to the showroom to pick up their cars.

FWIW, one really does not negotiate with Tesla to buy a car. The prices are fixed, with rare exceptions mostly dealing with tradein values.

 

[suwaneedad]

Yes. There are probably thousands and thousands like this sitting in many dealers lots across US. Tesla is unable to sell them, but they have to move them somewhere. So they sell these to the dealers at a very low rate and close the books showing a lot of sale for the end of the quarter. They will probably be forced to buy them back later, but for now the numbers will come out good for Q4 pushing the stock higher. Thats the name of the game.

You forgot to sign your note, Bob Lutz!

 

[dd564]

yes, almost a certainty. If you look at the same lots around January 6 or so, they may have lots of cars, but they'll mostly be used, tradeins.
By the way, Tesla actually ahs no dealers. What you see are Tesla-owned stores. This year a Federal Tax credit for electric vehicles is expiring for Tesla because of teh very high volumes they ahve sold. There is a mad rush to deliver as many cars as possible in the US before Dec 31, after which the tax credit will be only half what it is now. If you make a new trip to the showroom and go inside you'll see dozens of people taking delivery on their new cars and dozens more finalizing delivery details. Almost all of them will have made their purchase and payment arrangement online. Most of them, including me, only go to the showroom to pick up their cars.

FWIW, one really does not negotiate with Tesla to buy a car. The prices are fixed, with rare exceptions mostly dealing with tradein values.

I drive right by the store weekly.
They'll be moving a good number of cars in the next few weeks. Should be a busy place.

 

[mtndrew1]

I drive right by the store weekly.
They'll be moving a good number of cars in the next few weeks. Should be a busy place.

The correct term is “sh*t show” lol. My boss got her S at the end of December 2016 in Burbank Califonia and the cars were stacked so deep it took an hour just to get her car in the right place so that she could go home. The next week it was a ghost town.

 

[Super_Popular]

I doubt it will change, Portland has always been overloaded and they have several locations when new cars are kept. This is not a new thing.

 

[esrandl]

Despite the posts above suggesting excess inventory, this is not true. I had service about a month ago and the lot was packed. I asked about it- they are literally *all* customer cars waiting to be delivered. I also later considered getting a M3 Performance and called to see if it could be delivered before 1 Jan for tax credit. Ultimately I was contacted by a national Tesla person who scrubbed all the existing inventory. The "inventory" is likely peoples cars that were built and then they didn't take delivery. There were literally NO cars nationally that met the exact specs I was asking for already built but not sold (I wanted black interior, P3, no autopilot, blue). I could get a red/white and they were at Freemont waiting to be shipped (there were like 2 or 3). I ended up backing out as this late in the game the car would likely not arrive by 1 Jan if I had it built.

I'm sure there is a huge push to deliver as many as possible by 1 Jan, but this is not just inventory for the lots.

Will keep driving my current P85 which is still under warranty and likely get a P3 in a year or two even if tax credit expires.

 

[neroden]

It's worth remembering that people have lives. Tesla would love it if they could literally just call people up and say "We're delivering your car now, you have to leave work and come pick it up immediately" -- and they've actually tried to do that to a bunch of people, infuriating many -- but normally, when Tesla has a car ready for delivery, they have to hold it until the customer can actually get off of work, get a ride, etc. to actually show up and pick the car up. I'd estimate that the average car headed to a customer has to wait for half a week to a week in the store lot. With end-of-quarter rush, this is a LOT of cars.

 

[eye.surgeon]

How many non-owners of a vehicle would take the time to register at the owner/enthusiast forum for that vehicle, and as their first post. comment that they saw a lot of said vehicles parked at a showroom, and how concerning is that and gosh is that a bad sign for the company.