Tesla hides large number of Model 3 cars in a parking lot

Few Tesla (TSLA) lovers have spotted the electric car maker hiding Model 3 cars in an industrial area surrounding parking lots around California. In addition, in a tweet post, Elon Musk has revealed that Tesla got new orders of 5,000 Model 3 cars as well as 2,000 Model S and X. This follows research firm Needham’s downgrade of the stock as Model 3 cancellation rate is outpacing new orders.

Elon Musk in a tweet posted that the company has got over 7,000 new orders. This seems to be an unusual process as Tesla generally releases production and delivery numbers at the end of the quarter. But experts believe that this is Musk’s reply to Model 3 cancellations outpacing new orders. Tesla too issued a statement denying the same.

https://t.co/QkYgxiomYF

— IspyTSLA (@IspyTsla) July 19, 2018

This week, few Tesla lovers found roughly 2,000 Model 3 vehicles lined-up in the parking lot of a building near Tesla’s Fremont factory in the Bay Area. They immediately took Twitter as the medium of exchanging and sharing this info along with photos and videos of the building. One of them had taken a plane for taking the aerial view of the building along with the vehicles surrounding it.

In addition, about 4,000 vehicles were discovered in Burbank. These details were first reported by Zero Hedge, who hinted that Tesla is storing the vehicles for a future date delivery. Investors turned doubtful and victimized that Tesla is trying to reach its production rate by making cars that were not ordered by customers.

Overview from the north side and detail of the east end. pic.twitter.com/m4Y2WfoUkU

— Machine Planet (@Paul91701736) July 20, 2018

Center detail and overview from the east. pic.twitter.com/I6YQrrpo6V

— Machine Planet (@Paul91701736) July 20, 2018

But, market analysts were questioning that why Tesla built cars that were not ordered by customers when lots of people are waiting after reservation. Customers, who reserved for the Model 3, remained less concerned as they believe that Tesla is storing those produced around in the parking lot due to an increase in the number of manufactured vehicles reaching 5,000 in a week.

The market analysts believe that these are termed as demand issue, which hindered the delivery process due to better production ramp. Investors can anticipate the issues to get resolved only when the company’s delivery and production numbers are out.

Related: Tesla dips on cautious stance on Model 3 production