Tesla's Growing Inventory: What it Means for Customers and Sales Figures
Tesla is no stranger to growing inventory levels. In early December, USA inventory was around 1100 cars, which increased significantly and dropped at the end of the month due to big price cuts and free SuperCharger miles. As of January 11th it had grown to 2243 cars, with over 1000 Model Ys and 448 Model 3s - some priced above the $55K MSRP limit for IRS tax credits.
It's possible that Tesla was doing this on purpose at the end of the year in order to increase sales numbers. At the start of every quarter they ship cars to distant points from their factories, leading to a build-up of inventory. To reduce this number, they try to get it down to zero by the end of each quarter.
Tesla recently announced new price cuts, so it's likely that we'll see a decrease in inventory soon. However, customers may be put off from replacing their existing car due to Tesla not allowing them to transfer their EAP (Enhanced Autopilot) package to the new model. Furthermore, web sleuthing has revealed that Tesla isn't really offering a higher trade-in value for current models. This could lead customers to go through the hassle of selling their car privately, thus losing out on any sales tax offset available when trading in at a dealership.
Overall, while Tesla's inventory has been steadily increasing since early December, this could just be part of their strategy to increase sales figures. With new price cuts now announced, it's probable that we will see a decline in inventory as we approach the end of March. However, customers may be reluctant to replace their current model if they are unable to transfer their EAP package or receive an adequate trade-in value.
What has been happening with Tesla's inventory since early December?
Tesla's inventory was around 1100 in early December, but went up significantly and dropped at the end of the month due to price cuts and free SuperCharger miles. As of January 11th, the inventory is 2243 cars.
Is there a possibility of more price cuts in North America?
China price cuts moved 30K cars quickly, so it is possible that we may see some price cuts in North America as well. However, this two-week-long build-up of inventory may not be indicative of any long-term trend.
How does Tesla handle trade-ins?
Tesla does not allow customers to transfer their Enhanced Autopilot (EAP) to a new car. They claim to give a higher trade-in price for existing cars, but web sleuthing shows that this is not always the case. Customers may have to go through the trouble of selling their car and losing on the sales tax offset when trading at a dealership.
What are the benefits of buying a Tesla?
Buying a Tesla comes with many benefits, such as access to the SuperCharger network, Autopilot features, and over-the-air software updates. Additionally, Tesla cars have some of the best safety ratings in the industry and come with an 8-year/unlimited mile battery and drive unit warranty.
Are there any other incentives for buying a Tesla?
Yes! Tesla offers referral programs that give customers up to $1,000 off their purchase. They also offer free SuperCharger miles for long-distance trips and discounts on service and parts. Finally, they offer special financing options for qualified buyers.