Tesla’s growing inventory of unsold vehicles is becoming increasingly visible, quite literally from space, as satellite images reveal expansive lots filled with electric cars in Austin, Texas. This issue has cast a shadow over the electric vehicle giant, which has otherwise been in the spotlight for the much-discussed Cybertruck. Recent satellite imagery analyzed by Sherwood News between October 2023 and March 2024 shows these parking lots burgeoning with Teslas, underscoring a concerning trend for the company: it’s producing many more cars than it can sell.
The first quarter earnings report in April revealed a stark reality for Tesla. Despite an increase in production, the company’s deliveries fell by 8.5% compared to the previous year, with nearly 47,000 vehicles produced over what was sold. This marked Tesla’s first sales decline since the disruptions caused by the COVID-19 pandemic in 2020.
Rani Molla of Sherwood News shared the telling images on Twitter with the caption: “Ports, parking lots, and outside its factories — extra Teslas are piling up and you can see them from space.” This visual evidence from SkyFi, a satellite imagery firm, paints a clear picture: unsold Teslas are simply accumulating in various locations, awaiting shipment.
Adding to the company’s challenges, a recent report from Jalopnik highlighted that the Chesterfield Mall in St. Louis is serving as another storage point for Tesla’s excess inventory. As of May 2024, close to 500 Teslas were reported to be parked there, visible via SkyFi’s satellite images.
This stockpile issue comes at a critical time for Tesla and its CEO, Elon Musk. Later this week, Tesla shareholders are expected to vote on Musk’s nearly $50 billion pay package during the company’s annual shareholder meeting. This follows a February ruling by a Delaware judge who struck down the pay package, citing Musk’s extensive connections with the board members who approved the deal. In addition to Musk’s compensation, shareholders will also consider whether to relocate Tesla’s incorporation outside of Delaware, possibly to avoid further legal challenges from the same jurisdiction.
In the midst of these corporate challenges, Musk hinted over the weekend at future plans for his other companies, suggesting that longtime Tesla shareholders might be given priority if any of his other ventures go public. This statement, made just days before the critical shareholder meeting, appears to be an effort by Musk to rally support among his investor base during a tumultuous period for Tesla.
As Tesla confronts these production and sales discrepancies, the company’s strategic responses and shareholder decisions will be pivotal in shaping its path forward amid increasing scrutiny.