Tesla is making more cars but failing to sell them, that’s the market assessment that greets the BEV maker’s latest sales figures.
Because while it has been know to garner more demand than ability to supply vehicles, company data now shows that the situation has been reversed causing concerns among investors. At the same time, the BBC reports, supply shortages, logistics bottlenecks and rising costs are hurting the automaker while it increases its production of cars.
While Tesla’s revenues have soared by 50% in year-on-year figures to $21.45Bn, this is still lower than expected considering its increased production capabilities suggesting that cars are beginning to stack up at factory carparks in the US, China and Germany.
Elon Musk admitted that challenges, including as rising prices, higher borrowing costs and a major economic slowdown in the key China market, are having an effect but contested suggestions that demand for the brand is waning. He blames the gap between sales and car production figures on logistics, saying: “There weren't enough boats, there weren't enough trains there weren't enough car carriers.”
The automaker is facing increasing competition from domestic automakers in Europe and China who bring either well-known brand names or a much cheaper price tag. Also, while Tesla still dominates BEV sales in the US, several other automakers are boosting their presence in the market, including BMW which said this week it would invest $1.7Bn to expand its BEV production in the US.
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_