Tesla scrambles to push sales after new models reportedlysit untouched on lots nationwide: 'That just doesn't make sense'
Tesla has found itself in yet another sticky situation, as the launch of its new and improved Model Y has not gotten off to a smooth start.
According to Reuters, Tesla's launch of the Model Y has not gone according to plan. The retooled compact SUV was supposed to be one of the answers to the EV company's flagging sales in recent months, and was widely seen as one of the most anticipated debuts in the automotive industry.
However, while sales data isn't yet available, there are a lot of troubling signs that analysts claim indicate that sales have not been good to this point on the Model Y.
For starters, in most of the world, there is little to no wait time to get a Model Y at the moment, and Tesla is offering 0% financing on them. Given that the Model Y has only been out since January, analysts say that offering those kinds of financing deals on them is a bad sign.
"Why would you discount and have all these incentives and offers literally out of the gate?" asked Loren McDonald, chief analyst with EV data firm Paren. "That just doesn't make sense when your margins are already at multiyear lows. That suggests very strongly that there is a demand problem."
Tesla remains the largest EV manufacturer in the world, but the margin between its sales numbers and the sales numbers of the rest of the pack is shrinking. In many parts of Europe and the United States, EV sales numbers have continued to grow while Tesla has seen declining sales.
The reasons for this are varied. Some of it is because more and more companies, including mainstream automakers like Ford, Hyundai, Honda, and General Motors, have started rolling out their own EV models, while other EV-exclusive manufacturers like Rivian and BYD have entered the market and gained an increasing foothold in recent years as well.
Some of it is due to company policies and issues that have led to lawsuits painting the company in a less favorable light.
And some of it is due to widespread protests of Tesla's brand over CEO Elon Musk's involvement far-right political movements in the U.S. and abroad, which has made the prospect of owning one feel like a political statement to many prospective EV buyers.
Unfortunately for the EV manufacturer, all of it combines to paint a less than rosy picture for the company's outlook, even though drivers are increasingly looking to make their next car an EV.
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The company is clearly hoping that its offers on the Model Y will help boost sales numbers, but it's not stopping there.
The EV manufacturer is also working on the Cybertaxi, and has been promising cheaper versions of the Model Y and Model S for several years now, in an effort to stay competitive in an increasingly crowded market.
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