Unsold Teslas pile up in EV graveyard as Elon Musk's financial woes deepen

Recent satellite images have revealed a significant build-up of unsold Tesla vehicles in the United States, Australia, and Germany after the electric car giant experienced a tough first quarter with an 8.5 percent drop in deliveries compared to last year.

Tesla managed to produce 412,376 units of its Model 3 and Model Y but only succeeded in delivering 369,783 in the first quarter.

The company's production and delivery figures for models other than the Model 3 and Model Y, such as the Cybertruck, were grouped under "Other Models", showing 20,995 produced and 17,027 delivered.

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According to CleanTechnica, one notable accumulation of Teslas can be seen near the firm's US base.

Comparative satellite imagery from Tesla's Gigafactory in Austin, Texas , taken on a Thursday in October versus a Thursday in March, shows a noticeable increase in parked, unsold electric vehicles (EVs) around the site, reports the Express US .

It seems that excess Teslas are stacking up not just at ports and parking lots, but also around their factories and they're visible from outer space.

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These revealing shots were published by Sherwood News, utilising SkyFi's satellite imagery and object detection analytics to monitor the situation.

Moreover, Tesla has been using the deserted Chesterfield Mall near St. Louis to store surplus cars, where satellite imagery spotted 465 Teslas in May, up from none before.

Last month, a report from Australia's Channel 7 News showed a surplus of unsold Teslas gathering dust at Melbourne port, while the electric vehicle manufacturer reported a 40 percent drop in sales in Germany for the first five months of 2024.

In an attempt to boost sales, Tesla has been reducing its EV prices throughout this year.

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In Europe, the company is slashing the price of its Model Y SUVs by $6,485 (€6,000) to bolster Q2 sales figures in Germany, as per Notebookcheck.

Tesla's Chief Financial Officer, Vaibhav Taneja, addressed the company's negative $2.5 billion free cash flow, stating: "We expect the inventory built to reverse in the second quarter and free cash flow to return to positive again."

CleanTechnica reports that "The second quarter ends in a few weeks, and we will know soon afterwards if the inventory mismatch has corrected itself,".

Despite reaching out for a comment on their inventory situation, Daily Express US did not receive a response from Tesla.