Tesla Inc TSLA is likely facing a severe inventory pile-up in Europe, underscoring the intense slowdown in the EV industry, according to satellite images available publicly.
What Happened: Google Earth satellite images, first posted on Reddit, show numerous Teslas parked at the Neuhardenberg airfield, probably unsold from the company’s Berlin Gigafactory (its only European plant).
The Neuhardenberg airfield is located in the middle of the German capital region, near the Berlin Brandenburg Airport, with a 2,400-meter-long runway, according to the airport’s official website.
As per the latest satellite images from March, the number of parked Teslas appeared to run in the thousands, and according to the Reddit thread “look like mainly Model Ys,” although this was not immediately clear.
Why It Matters: Tesla’s global vehicle inventory jumped 87% from last year to 28 days of supply in the first quarter. The company’s global deliveries fell to 386,810, marking an 8.5% year-on-year dip as demand dwindled. The company, however, produced 433,371 vehicles in the time frame.
As per data by the European Automobile Manufacturers Association, Tesla's new car registrations in the European Union also fell by 4.7% in the first quarter to 66,203 units.
Impact On Tesla Financials: The waning demand and piling inventory weighed heavily on Tesla’s first-quarter earnings. The company reported a revenue of $21.3 billion, down from the $23.33 billion reported a year earlier. Tesla's net profit in the quarter stood at $1.13 billion, falling 55% from $2.51 billion a year earlier.
Price Action: Tesla stock closed 1.7% lower on Wednesday at $174.72 and dropped 0.2% after hours. The stock is down nearly 30% year-to-date, according to data from Benzinga Pro.
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Read More: Rivian Aims To Churn Out 215K EVs From Illinois Factory, With R2 Leading Charge, And Save Over $2B
Photo: Google Earth Pro
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