Connect with us
Used car Used car

News

Tesla’s used car business is rapidly expanding, on pace to triple used sales

Source: Motor Trend

Published

on

Used cars have a healthy share of most automakers’ cash flow, and Tesla is looking to get into that game.

As of the Q2 filing, Tesla has $1,470,359,000 in “finished goods” inventory on their books. They don’t break this section down, but it includes “vehicles in transit to fulfill customer orders, new vehicles available for immediate sale at our retail and service center locations, pre-owned Tesla vehicles and energy storage products.”

Used inventory

Source: Cars.com

Tesla had an increase of $154.1M in used car sales this year thus far.

In 2016 as a whole, the company saw an increase of $117.4M. At the rate it is going at now, the company is easily on pace to triple used inventory sales.

The company attributes the used sales bump to an increase in pre-owned vehicle sales as an organic result of increased automotive sales as well as from expansion of our trade-in program.

Tesla is also making moves in the used car space by listing its used inventory on Cars.com. While owners have been listing their Teslas on the website for some time, Tesla itself is now listing its inventory.

Advertisement
Used inventory

Source: Cars.com

“In future periods, we do not anticipate meaningful revenue from sales of powertrain or other vehicle systems and components to third parties. However, we anticipate that revenue from sales of pre-owned vehicles will continue to increase as the volume of pre-owned vehicle sales increases and that revenue from services by Grohmann will decrease as we primarily consume internally its services,” the company said in its Q2 filing.

The Elon Musk-run company has been involved in some legal back-and-forth with a few states who ban Tesla’s direct-to-consumer model. The most notable of these legal battles is the one taking place in Michigan.

Michigan has an Anti-Tesla Law, which states that new auto sales can only be conducted by franchised auto dealerships. Tesla claims this law discriminates against out-of-state interests and is an unconstitutional infringement on their preferred business model.

Tesla is currently finding ways around the law — consumers can order their Teslas online but they have to pick them up in neighboring states like Ohio or Illinois.

The sales on Cars.com are also a way around the Anti-Tesla law since it only impacts “new auto sales.”

The used car sales is just another way that Tesla is trying to bring new Tesla owners into the fold. The company previously announced an expansion of its service fleet in an effort to make the vehicle more user-friendly and convenient. The EV titan will also add 100 new Tesla Service Centers and 1,400 new service technicians, the addition of 100 facilities will bring the total number up to just over 250 service centers worldwide.

Advertisement

Tesla’s continued foray into the used sales space is a clear indicator that the company is looking to utilize that part of the business to bolster its bottom line and bring new owners into the world of Tesla.

Comments

News

Tesla rival brings back trade-in promo to poach customers

Companies are doing anything to convince them to switch from Tesla.

Published

on

Tesla rival Polestar has brought back its promotion that will offer up to $20,000 in discounts for those looking to trade in their Teslas for another EV.

In late February, Polestar launched a similar campaign, and based on the success it said it had with it, the company has decided to bring it back for April in an attempt to woo more customers away from the Elon Musk-headed car company.

A spokesperson for Polestar told Reuters in a statement that:

“We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March. We are currently running a similar campaign for April.”

The campaign is very obviously an attempt to poach Tesla owners who might be willing to switch cars as some have expressed distaste with CEO Elon Musk’s involvement in politics, or they are just hoping to try something different.

Advertisement

Anti Elon Musk protester attacks Polestar after mistaking it for a Tesla

The offer is only valid on the Polestar 3, a vehicle that is built in South Carolina at Volvo’s factory just outside of Charleston. Volvo is Polestar’s parent company, which is why it is handling the production of the vehicle.

Evidently, the promotion was something that had Polestar encouraged, especially as some Tesla owners are looking to switch.

Polestar’s head of sales for the United States, Jordan Hofmann, even said in a post on LinkedIn that the company saw success after offering the Tesla trade-in promotion:

“The numbers speak for themselves. This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible.”

Advertisement

Lucid currently also has a similar promotion going on with an up to $4,000 discount on the Air sedan for Tesla owners who choose to trade in.

Continue Reading

Cybertruck

Tesla unveils new Cybertruck configuration, but not in the U.S. (yet)

Tesla’s Rear-Wheel-Drive trim of the Cybertruck has arrived, but not in the U.S. quite yet.

Published

on

Credit: Tesla

Tesla has officially unveiled a new configuration of the Cybertruck with a new Long Range Rear-Wheel-Drive trim, but it is not yet available in the United States.

Instead, Tesla is advertising the vehicle on its website in Saudi Arabia, a market where it launched deliveries for the first time today, April 10.

Advertisement

Tesla has always planned to launch this configuration of the Cybertruck, as in November 2019, at the vehicle’s unveiling event, it was the most affordable and most accessible trim, priced at just $39,990.

However, Tesla did not launch it right away, instead focusing on the All-Wheel-Drive trim levels that appeared to be in higher demand. Now, it is gearing up for its launch as planned for late 2025, but it is limiting orders to the Middle East, at least for now.

Specs

The specs of the new Tesla Cybertruck trim are as follows:

  • Range – 350 miles/563 kilometers
  • Acceleration – 6.6 seconds 0-100 km/h
  • Top Speed – 180 kmh/111 MPH
  • No adjustable air suspension
  • No rear touchscreen
  • Price not listed

U.S. Launch

While Tesla has not listed this specific trim of the Cybertruck in North America yet, it is likely that the company will launch it in the United States later this year.

Tesla has said that this trim level would be available in the U.S. in late 2025, and we would imagine that is still the plan. The reasoning for launching it in the Middle East before it heads to the U.S. is unknown, but it could have something to do with regulatory processes, specifically the EPA and its approval processes.

In the broader scope of things, launching this Cybertruck version in the U.S. could help to improve Tesla’s delivery figures for years to come after its launch.

Advertisement

Many people have been hoping for Tesla to launch a Cybertruck that is more affordable, and it could be a big reason the pickup has not been a bigger seller (despite being the best-selling EV pickup on the market).

This could be the key to unlocking more demand for the Cybertruck, especially in the U.S.

Continue Reading

Cybertruck

Tesla confirms Cybertruck will make its way out of North America this year

The Tesla Cybertruck is headed to a new market outside of North America.

Published

on

Credit: Tesla

Tesla has confirmed that it will officially launch Cybertruck deliveries outside of the United States, Canada, and Mexico for the first time later this year.

It will be the first time the Cybertruck officially launches outside of North America, and will land in Saudi Arabia, the United Arab Emirates, and Qatar in late 2025.

Tesla launched deliveries in Saudi Arabia for the first time today, bringing its cars to the Middle East and launching a new market of availability.

Advertisement

With the big money available in the region, Tesla is surely positioned well, especially as the Cybertruck continues to be a vehicle that celebrities have flocked toward since deliveries began in late 2023.

Tesla will likely be shipping these vehicles from Gigafactory Texas to the Middle East, as both Giga Berlin and Gigafactory Shanghai have not established Cybertruck production lines. It will be interesting to see how soon Tesla can iron out this logistics process and whether it can stick to this timeline.

After the launch of the Cybertruck, many wondered when Tesla would launch it in a market outside of North America. Many speculated whether the company would follow through on the smaller version of the all-electric pickup that CEO Elon Musk hinted toward a few years ago.

Elon Musk hints at smaller Tesla Cybertruck version down the road

However, that smaller design is likely not needed for the roads of Saudi Arabia and other neighboring countries. Tesla truly considered that abbreviated version for Europe and Asia, where streets and homes are more compact.

Advertisement

 

Continue Reading

Trending