Hundreds of Teslas parked at a Scottsdale lot. Why?

SCOTTSDALE, Ariz. - Behind a closed business in Scottsdale, there's a growing supply of seemingly brand-new Teslas that have been parked.

Industry analysts say it's a sign the demand has slowed.

Tesla's facility is just a few blocks away. There are a couple of hundred Teslas in the lot, and it’s expanded since the lot was first discovered.

Looking at Google Street View of the lot dating back to 2021, the amount of Teslas has grown steadily.

Clay Felize of EV Access says they rent out hundreds of electric vehicles to people who love them in Phoenix.

"There’s nothing better than moving forward as far as grabbing the way the vehicle market is going to move than electric vehicles," Felize said.

They have far more Teslas for rent than anything else and the demand matches that.

"The overall price and value combination you get with the product," Felize said. "Tesla, because they hit the market so early, allows them to have a better approach on the product in general."

While his rental business is performing, Hertz is selling off its Tesla fleet.

Outside a boarded-up movie theater in Scottsdale sits nearly 250 Teslas, including some Cybertrucks. Most are brand new and still wrapped in plastic.

Industry analyst Karl Brauer of iseecars.com says these overflow lots are signs of slow demand.

"If you see a lot full of brand-new Teslas, and it’s getting more and more all the time, it’s clear they are unable to find buyers for these cars, and they have to modulate their production capacity now," Brauer said.

Tesla didn’t respond to questions about the lot of cars.

The industry as a whole slowed in 2024. After layoffs last year, Lucid Motors in Casa Grande said in January that no more layoffs are expected.

But, things changed quickly. Last month, there were more layoffs.

A spokesperson said there were about 60 salaried Arizona employees who were laid off, but no production workers were impacted.

Brauer said Tesla lost money for over a decade before turning a profit.

"Now we’ve got Lucid and Rivian. They’re much younger companies. Are they going to have a 10-15 year runway to lose money before they’re profitable? We’ll see," Brauer said.

Again, Tesla did not respond to FOX 10's requests for comment.