Part 7/10:
Despite challenges, Tesla continues to sell every vehicle it produces, with production outpacing sales in certain quarters—a trend last seen in 2017. This suggests that demand may be weakening, especially if the company exceeds its sales targets with increased production.
The fact that Tesla's plant utilization remains low—around 10%—yet the company is pushing to ramp up production aggressively raises concerns among investors. A strategy that involves massively increasing output without corresponding demand could lead to inventory surplus and downward pressure on vehicle prices.
Elon Musk’s comments about producing as many vehicles as possible, despite these challenges, should serve as a warning signal. Such aggressive scaling, amid shaky demand, might signal financial risks ahead.