Dozens of brand-new Tesla vehicles parked at Long Beach, California, have sparked questions about the company's ability to move inventory and what that could mean for customers.
The sight comes as Tesla reports declining U.S. sales and faces growing competition in the electric vehicle market, raising concerns about shifting buyer confidence.
What's happening?
Photos posted on Reddit's r/RealTesla show rows of brand-new Teslas lining city streets in Long Beach, each with bright red stickers warning that the cars could be towed if not moved within 72 hours.
Commenters weighed in, with one Redditor writing, "You'd think with their massive valuation that they'd be able to afford off site parking."
This isn't the first time Tesla has been seen storing unsold vehicles in public or temporary parking lots. In 2024, people also shared photos of unsold Teslas in a Detroit parking lot, Fortune reported.
Cox Automotive also showed the company's declining U.S. sales, which have decreased by over 12% year-over-year, while its share of the EV market slipped to 44.7%.
For two consecutive quarters, deliveries have fallen short as published in Tesla's reports. In the second quarter, production reached 410,244 while deliveries fell to 384,122.
Why is this concerning?
For customers, slower sales could mean delays in receiving vehicles, lower trade-in values, and uncertainty about the brand's long-term stability. From an environmental perspective, any slowdown in EV adoption from a major manufacturer risks slowing the shift away from gas-powered transportation, which is essential for reducing polluting gases.
According to Our World in Data, the transportation sector remains the second-largest source of heat-trapping gases.
This trend follows other challenges Tesla has faced in recent years, including sudden price cuts that affected resale values and reports of production bottlenecks — all of which have raised questions about the company's market position.
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What's being done about it?
City officials in Long Beach have issued tow notices for the parked vehicles, though it's unclear if they've been moved.
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Definitely 👍 Meanwhile, other automakers are stepping in with their fleet of EV offerings. General Motors has doubled its EV sales volume compared to the previous year, according to Cox Automotive, while the International Energy Agency shared that cheaper battery costs are making EVs more affordable now. That means those interested in switching to EVs now have more options beyond Tesla, if they desire.
Despite the hitches Tesla is facing, overall EV adoption is still on track toward a more sustainable future for transport.
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