Tesla has too many Model Y and Model 3 stocks in China: we explain why

With more than 87,000 Model 3s and Model Ys produced at its Shanghai factory in October, Tesla has just broken a new record. And yet, sales are struggling to keep up and stocks are piling up. But how is this done?

The Model Y in the Shanghai factory

It is now far from the period when Tesla was on the verge of bankruptcy. Indeed, Elon Musk’s firm is doing very well today, with sales continuing to grow. So much so that it should be able to deliver more than a million vehicles worldwide in 2022 by the end of the year. A record, while in the first quarter alone, no less than 310,048 vehicles were delivered.

A frantic pace

In order to meet the high demand, Tesla must therefore ensure constant production and at a rapid rate. And for this, the firm can count on its Chinese factory in Shanghai, which has just broken a new record with 87,706 Model 3s and Model Ys produced in October as the US agency report Reuters.

But there is a small problem: only 71,704 vehicles were delivered during this period, a gap of 16,002 cars that did not find takers. This is the largest stock ever recorded by the brand since the commissioning of the Shanghai factory in 2019. Built in barely a year, it is today the one that produces the most electric cars in the world. world, with no less than 800,000 vehicles produced each year.

Several reasons would explain this discrepancy. First of all, the regression of the Chinese market, which would then have an impact on sales. The international monetary fund expects growth of only 3.2% in 2022, compared to 8.1% last year. Furthermore, the government of the Middle Kingdom is also considering a elimination of the ecological bonus for electric and hybrid cars.

Also, Tesla tends to produce a lot of vehicles at the beginning of the quarter and then focus on deliveries thereafter. The gap should therefore logically decrease over time. Especially since Elon Musk had announced that this was going to change, while the firm was losing money by storing all these cars. Because unlike traditional brands, Tesla has showrooms and must take care of storage and logistics itself.

another explanation

Tesla wants its vehicles to stay at the top of the best-selling model charts, so it needs to achieve an exceptional production rate to meet demand and keep delivery times as short as possible. Last September, the Model Y became the best-selling new car in the world.

But these numbers should be taken with a grain of salt. Because deliveries are up and down, and can be very high during one month and then low during the next. But other causes may also explain this gap between production and sales. As the report Numeramamany customers canceled their order for the Tesla Model Y Propulsion, advertised as the cheapest in the range.

Indeed, if this one met with great success, the significantly longer delivery times have deterred many. It is therefore in particular for this that many copies of the SUV are currently in stock.

Tesla Model Y Performance, Midnight Cherry Red

A phenomenon already encountered at the launch of the Model 3 a few years earlier. But this is not the only explanation. Indeed, ofMany customers were counting on the recovery of their sedan to switch to the Model Y. However, as the price of this one is strongly reduced, the offers of recoveries are also weaker.

These are only valid for 7 days and only apply to the delivery of the new vehicle, and the amount therefore has time to change, depending on the price variations of the electric sedan. Result, again, many customers withdraw and keep their Model 3 by canceling their order for the Model Y.

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