Trump’s Tesla Promotion: A Dismal Failure for Sales and Inventory

In a surprising twist of events, former President Donald Trump's flashy $100 million promotional effort for Tesla seems to be falling flat as sales remain sluggish, according to recent inventory assessments and delivery timelines in the United States.

Earlier this week, Trump hosted a press conference outside the White House that many have characterized as little more than a high-profile infomercial for the electric vehicle giant. This spectacle came just a day after Tesla’s stock suffered a staggering 15% drop, putting a dent in the wealth of Elon Musk — Trump's most significant financial supporter in the political arena.

In the aftermath of the publicity stunt, it was reported that Musk is planning an additional $100 million donation to Trump, raising eyebrows over potential conflicts of interest and a possible quid pro quo arrangement.

While it might seem premature to evaluate the impact of Trump's promotion so soon—only four days post-event—an inventory analysis reveals the situation clearly. Unlike traditional automakers that operate through franchised dealerships, Tesla manages its own distribution network, taking orders directly online and coordinating them with existing inventory, particularly crucial at quarter's end as they strive to minimize stockpile appearances.

As of March 11, the day of Trump's promotion, Tesla's US inventory stood as follows: - 1,136 Model 3 - 2,332 Model Y - 1,010 Cybertruck

Fast-forward to today, March 14, and the inventory now shows: - 1,435 Model 3 - 1,500 Model Y - 1,006 Cybertruck

This data suggests that the Model 3 saw a modest increase in listings, while the Cybertruck inventory has remained relatively unchanged, probably due to ongoing containment issues. The Model Y, however, experienced a noteworthy decrease of nearly 800 units; though this decline can potentially be attributed to significant discounts on older generation models that Tesla is keen to clear out in preparation for a new generation.

Although some may speculate that Trump’s promotional effort could have sparked a slight uptick in sales, it’s apparent that the primary factor in reducing Model Y inventory is Tesla's aggressive pricing strategy—essentially pushing the old models at prices as low as $35,000.

As for future orders, the truly telling sign will be Tesla's delivery timelines for new vehicle configurations. After reviewing delivery timelines for both California and Texas addresses, it appears that Tesla is still available to deliver new Model Y Launch Editions by the end of March, indicating a rather lackluster demand for the newest offerings.

At this juncture, it seems unlikely that Trump's appearance will lead to a significant surge in orders for the upgraded Model Y, especially considering it primarily promotes the higher-priced “Launch Edition.”

The bottom line? The initial "Trump bump" in Tesla's market visibility is not translating into tangible sales or inventory improvement. With Trump's history of disseminating misinformation about electric vehicles, it's reasonable that potential buyers remain reluctant to see his support as a genuine endorsement of Tesla’s products.

As it stands, while Musk's efforts to spend $100 million on advertising could have been a game changer, the initial outcomes suggest it might not be as compelling as both he and Trump had hoped. The bigger question remains: how can Tesla reignite interest in the face of faltering sales? The days ahead will certainly be telling.