Despite ramping up two new gigafactories, Tesla's production seems to have peaked in the last quarter of 2022. There could be many reasons for that, and one of them is that Tesla owners don't want to upgrade their cars. Especially those who paid for the FSD capability are reluctant to buy another car because they need to pay again for the self-driving software.
Although Tesla and Elon Musk deny it, Tesla has a demand problem. The first quarter of the year started with massive discounts meant to keep the metal moving. For a while, they seemed to work, but soon the inventory level increased again. It reached an all-time high at the end of April despite several price cuts throughout the quarter. It was clear that price cuts alone would not convince people to buy more Teslas.
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