- Tesla is under scrutiny for storing Cybertrucks in a disused parking lot of a Detroit shopping center, which officials say violates local zoning rules. Tesla has been dealing with disappointing sales and multiple recalls of the Cybertruck, reportedly leaving the EV maker with a stockpile of excess inventory. Tesla has also cut back production of the trucks, reassigning workers to more popular production lines.
Tesla is facing backlash from local authorities in Michigan for storing Cybertrucks and other unsold vehicles in the parking lot of a shuttered shopping center under renovation, a move that officials say violates local zoning laws.
Over the past few weeks, dozens of Tesla vehicles have been spotted piling up at the Hunter’s Square shopping center on Orchard Lake Road in Michigan, close to a Tesla service center in West Bloomfield. Clips of the parked EVs, totaling more than 100, have been circulating on social media.
Tesla’s new showroom nearby is suspected to be the source of the overflow. While Tesla employees coming to collect the parked vehicles told CBS Detroit that the nearby service center’s owner owns the shopping center and the cars were marked for delivery, local officials have taken issue with the dealership’s storage plans.
Representatives for the Farmington Hills planning and community development department did not reply to Fortune‘s request for comment by press time.
However, the city’s director for the department, Charmaine Kettler-Schmult, told CBS Detroit: “The City of Farmington Hills code enforcement office has been in communication with the Hunter’s Square shopping center management to resolve the issue. They have been notified that storage of vehicles is not a permitted use. The enforcement process is being followed and takes time.”
Tesla’s stockpile of Cybertrucks
The Cybertruck has had a relatively poor sales performance so far, reportedly leaving Tesla with a stockpile of unsold vehicles.
In 2024, the EV maker sold just shy of 40,000 Cybertrucks, missing Wall Street expectations by around 10,000 units. Tesla CEO Elon Musk had previously projected that Cybertruck sales could reach 250,000 units per year.
In the first quarter of this year, Tesla sold just over 6,000 Cybertrucks, indicating the EV maker might be facing a weaker year ahead, according to Cox Automotive. In total, Tesla has delivered less than 50,000 Cybertrucks.
The underwhelming sales have reportedly led to massive inventory stockpiles, estimated to have reached a record high of 10,000 units last month, according to Electrek.
Tesla is rolling back production on the trucks in response. Employees told Business Insider the company first started moving some workers off Cybertruck production in December, reallocating some to the more popular Model Y production lines.
The truck and other Tesla vehicles have also become a lightning rod for backlash against the company’s CEO. Tesla is facing global protests over Musk’s political leanings and role in the Trump administration.
The Cybertruck has also been hit with eight recalls since deliveries began in late 2023. The issues ranged from trim panels potentially falling off while driving to windshield wiper failures and a delayed rear camera feed. The latest issue, due to a potential problem with a stainless-steel trim panel detaching while driving, affected nearly 46,000 vehicles, or almost every Cybertruck Tesla had managed to sell at the time.
Representatives for Tesla did not immediately respond to a request for comment from Fortune, made outside the company’s normal working hours.