What's With Thousands Of Teslas Piling Up At A German Airfield? Satellite Images Hint At Intense Inventory Pressure For EV Giant
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) is experiencing a significant inventory buildup in Europe, as satellite images reveal thousands of Teslas parked at the Neuhardenberg airfield near Berlin, likely unsold vehicles from the Berlin Gigafactory. This situation highlights a broader slowdown in the EV market, with Tesla's global vehicle inventory increasing by 87% to 28 days of supply in Q1, as global deliveries fell by 8.5% year-on-year to 386,810 vehicles. Tesla's financials have been impacted, with Q1 revenue dropping to $21.3 billion from $23.33 billion a year earlier, and net profit decreasing by 55% to $1.13 billion. Tesla's stock has also been affected, closing 1.7% lower on a recent Wednesday and down nearly 30% year-to-date.
May 09, 2024 | 11:39 am
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Tesla Inc faces a significant inventory buildup in Europe, impacting its Q1 financial performance with lower revenue and net profit, and contributing to a nearly 30% decline in its stock price year-to-date.
The inventory buildup directly impacts Tesla's financial health by increasing storage costs and potentially necessitating price reductions to move unsold inventory, affecting profitability. The reported decline in revenue and net profit, along with the stock price drop, indicates a negative short-term impact on TSLA's stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100