Update: 4/29 6:02 pm est – Added comment from Troy Teslike, starts para. 4
The volume of Tesla inventory vehicles in Europe has spiked to its highest point this year, indicating the potential for another price cut.
Tesla has been finding a lot of success in the European market ever since it introduced its Model Y SUV to the continent, which has quickly become not only Tesla’s top seller in the region but the top-sold vehicle in many of Europe’s largest economies. Despite this success, Tesla saw a slight but noticeable decline in sales in the European market during the year’s first quarter. Now, trouble seems to continue for the American EV brand, which now sees a record number of inventoried vehicles in Europe.
The revelation regarding Tesla’s European inventory spike was posted on Twitter by Troy Teslike, who tracks Tesla sales and production.
Here is a chart that shows Tesla’s inventory in Europe over time (cars listed for sale on Tesla’s website): https://t.co/xbjD6sh8wm Supply is not an issue anymore. Therefore Q2 sales should give us a clear picture of demand
Europe sales:
• 94,819 in Q4 2022
• 93,784 in Q1 2023 pic.twitter.com/BxQm2bJX4P-->
— Troy Teslike (@TroyTeslike) April 28, 2023
The results posted on Twitter show that Tesla has reached well above its record high for the year, primarily with units of Model 3s and Model Ys. However, a surprising number of Model Ss and Model Xs also seem to be accumulating.
In a comment to Teslarati, Troy Teslike laid out a couple of reasons Tesla may be experiencing a buildup of units in Europe. “I think the inventory buildup in Europe suggests a shift from being production-limited to demand-limited,” Teslike begins. “However, this doesn’t mean deliveries will be affected. It just means production exceeds demand.”
Teslike then points out that, thanks to Tesla’s continuing massive production ramp, a buildup of inventoried units has been slowly but surely creeping up on the automaker. “Tesla’s global production was higher than deliveries in the last four quarters. That resulted in an increase in inventory. Most of that inventory build-up happened in Europe.”
-->Tesla’s inventory at the end of Q1 was equal to 15 days of supply based on page 6 of Tesla’s shareholder letter https://t.co/n3wXWLqrHl Here is how that compares to other quarters.
Production was higher than deliveries in the last 4 quarters. pic.twitter.com/s5zc5s9Kgp
— Troy Teslike (@TroyTeslike) April 28, 2023
Concluding his statement, Teslike points to a specific source, Tesla Giga Shanghai. Thanks to Shanghai’s incredible production output, and Tesla’s uphill battle in China, excess units are ending up in Europe, but, according to Teslike, this may not be a bad thing. With added volume on the continent, the American automaker will be able to address demand quicker than ever, the only question is, will it be able to garner the necessary demand?
This strange inventory anomaly has attracted countless analysts besides Teslike, looking to find the stem of the issue. Does it stem from slowing demand for Tesla vehicles? Is it indicative of a slowing EV segment more generally? Is this issue just a symptom of more significant regional macroeconomic problems? Or, for the optimists, is this sudden spike even something worthy of concern?
-->It goes without saying that Europe, much like many other Western markets, has seen a good deal of economic turbulence in the first half of the year, including persistent high living costs, high inflation, and even the potential for bank collapse, however considering the success of other EV makers, this factor is unlikely the sole contributor.
Furthermore, with the dramatic uptick in EV sales seen at brands like Porsche, BMW, and Mercedes, it would be hard to believe that Tesla’s offerings suffer from a lack of affordability, especially as they already undercut these competitors by a substantial margin.
It should be noted that competition within the EV market, particularly in Europe, has gotten quite fierce with the entrance of countless new offerings, not only from the aforementioned luxury competitors of Tesla but also from Volkswagen, Renault, Peugeot, and Ford; brands that are all reasonably successful within the European affordable vehicle market outside of EV sales.
Tesla CEO Elon Musk has made it clear that Tesla’s pricing strategy, attempting to continue to lower prices to attract more customers, will continue well into the future. However, considering the current round of price cuts has still resulted in a record spike in inventory, it remains unclear if this will be the fix Tesla is looking for.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
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News
Tesla FSD approved for testing in Nacka, Sweden, though municipality note reveals aggravating detail
Nacka, Sweden, a municipality just a few miles from Stockholm, has given its approval for FSD tests.
Tesla has secured approval for FSD testing in an urban environment in Sweden. As per recent reports from the Tesla community, Nacka, Sweden, a municipality just a few miles from Stockholm, has given its approval for FSD tests.
A look at the municipality’s note regarding FSD’s approval, however, reveals something quite aggravating.
FSD testing approval secured
As per Tesla watcher and longtime shareholder Alexander Kristensen, Nacka is governed by the Moderate Party. The shareholder also shared the municipality’s protocol notes regarding approval for FSD’s tests.
“It is good that Nacka can be a place for test-driving self-driving cars. This is future technology that can both facilitate mobility and make transportation cheaper and more environmentally friendly,” the note read.
The update was received positively by the Tesla community on social media, as it suggests that the electric vehicle maker is making some legitimate headway in releasing FSD into the region. Sweden has been particularly challenging as well, so securing approval in Nacka is a notable milestone for the company’s efforts.
-->Aggravating details
A look at the notes from Nacka shows that FSD’s proposed tests still met some opposition from some officials. But while some critics might typically point to safety issues as their reasons for rejecting FSD, those who opposed the system in Nacka openly cited Tesla’s conflict with trade union IF Metall in their arguments. Fortunately, Nacka officials ultimately decided in Tesla’s favor as the company’s issues with the country’s unions are a completely different matter.
“The left-wing opposition (S, Nackalistan, MP and V) voted no to this, referring to the fact that the applicant company Tesla is involved in a labor market conflict and does not want to sign a collective agreement. We believe that this is not an acceptable reason for the municipality to use its authority to interfere in a labor law conflict.
“Signing a collective agreement is not an obligation, and the company has not committed any crime. The municipality should contribute to technological development and progress, not work against the future,” the note read.
News
Tesla Model 3 and Model Y named top car buys in Norway
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability.
Norway’s annual roundup of the best car purchases featured Tesla’s two main sellers this year, with the Model 3 and Model Y securing top positions in their respective segments.
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability. The verdict comes as electric vehicle adoption remained above 95% of new vehicle sales in the country.
Tesla Model 3 strengthens its value position
Among compact EVs, the Tesla Model 3 maintained its position as the best overall buy thanks to its strong blend of performance, efficiency, and updated features. Reviewers noted that every trim offered compelling value, especially with the all-electric sedan’s improved cabin ergonomics and the return of the turn-signal stalk, which was one of the few previous complaints among drivers.
The Model 3’s mix of long-range capability, low operating costs, and responsive handling has continued to set the benchmark for compact EVs in Norway. While competitors from Hyundai, Volkswagen, and Peugeot have narrowed the gap, Tesla’s price-to-capability ratio has remained difficult to beat in this segment, Motor.no reported.
“The Model 3 clearly offers the best value for money in the compact class, no matter which version you choose. Now it also gets the turn signal lever back. This eliminates one of the few flaws in a driving environment that many believe is the best on the market,” the publication wrote.
-->Tesla Model Y claims its crown
The Tesla Model Y emerged as Norway’s top family-car purchase this year. The latest refresh introduced improvements in ride quality, styling, and interior materials, allowing the Model Y to deliver a more premium driving experience without a substantial price increase.
Reviewers praised its spacious cabin, strong safety profile, and practical range, all of which reinforced its appeal for families needing an all-purpose electric crossover. The Model Y remains especially notable given its continued popularity in Norway even as Tesla faces declining sales in other global markets.
“The Model Y is back as the winner in the family class. The upgrade in the new year was even more extensive than expected. It is a slightly more elegant and significantly more comfortable Model Y that solidifies its position as Norway’s best car purchase in the most important class,” the Norwegian motoring publication noted.
News
Tesla Giga Berlin is still ramping production to meet Model Y demand: plant manager
Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand.
Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand. While registrations in some countries such as Sweden have fallen sharply this year, the company’s sales in other key territories have been rising.
Giga Berlin shifts to two shifts
Giga Berlin factory manager André Thierig told the DPA that the facility has been running two shifts since September to manage a surge in global orders. And due to the tariff dispute with the United States, vehicles that are produced at Giga Berlin are now being exported to Canada.
“We deliver to well over 30 markets and definitely see a positive trend there,” Thierig said.
Despite Giga Berlin now having two shifts, the facility’s production still needs to ramp up more. This is partly due to the addition of the Tesla Model Y Performance and Standard, which are also being produced in the Grunheide-based factory. Interestingly enough, Giga Berlin still only produces the Model Y, unlike other factories like Gigafactory Texas, the Fremont Factory, and Gigafactory Shanghai, which produce more than one type of vehicle.
Norway’s momentum
Norway, facing an imminent tax increase on cars, has seen a historic spike in Tesla purchases as buyers rush to secure deliveries before the change takes effect, as noted in a CarUp report. As per recent reports, Tesla has broken Norway’s all-time annual sales record this month, beating Volkswagen’s record that has stood since 2016.
-->What is rather remarkable is the fact that Tesla was able to achieve so much in Norway with one hand practically tied behind its back. This is because the company’s biggest sales draw, FSD, remains unavailable in the country. Fortunately, Tesla is currently hard at work attempting to get FSD approved for Europe, a notable milestone that should spur even more vehicle sales in the region.
Tesla FSD approved for testing in Nacka, Sweden, though municipality note reveals aggravating detail
Tesla Model 3 and Model Y named top car buys in Norway
