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Tesla Sales Plummet: Cheaper EVs Can't Reverse Drop
12 Dec
Summary
- U.S. vehicle sales hit a near four-year low in November.
- Cheaper Model Y and 3 variants failed to lift overall sales.
- Tesla's U.S. EV market share rose despite declining sales.
U.S. vehicle sales for Tesla saw a significant decline in November, reaching a near four-year low. Approximately 39,800 cars were sold, marking a more than 23% decrease compared to the previous year and the lowest figure since January 2022. This downturn occurred despite the release of more affordable versions of the popular Model Y and Model 3 in October, priced around $5,000 less than their predecessors.
The introduction of these basic variants, aimed at stimulating demand after federal EV tax subsidies expired, did not achieve the desired effect. Analysts suggest the new models cannibalized sales of higher-priced premium versions, particularly the Model 3. Further indicating weak demand, Tesla offered 0% financing on these recently launched standard models.
Despite the overall dip in sales volume, Tesla's share of the U.S. electric vehicle market expanded to 56.7%. This occurred during a period where the broader EV market experienced a sharp decline of over 41% in November. The results highlight increasing pressure on Tesla's current model lineup amid intensifying competition and anticipation of new, lower-cost EVs entering the market in the upcoming year.
