Tesla suffers sharp sales decline in the US as EV sales drop
While official sales figures are yet to be confirmed, Reuters reports, citing data from Cox Automotive, that Tesla sold 23% fewer electric vehicles in the US in November than it did a year earlier. Specifically, US sales fell from 51,513 units in November 2024 to 39,800 vehicles. Tesla last recorded such a low figure in 2022. The decline in demand is primarily attributed to changes in subsidy policies: the Trump administration discontinued the US tax credit of $7,500 in September.This triggered the anticipated market slump in November. According to Cox Automotive, electric vehicle sales in the United States dropped by around 41%, meaning Tesla, with its comparatively smaller decline of 23%, saw its market share increase from 43% to 56%. Reuters notes that Tesla did not immediately respond to a request for comment on the sales figures.However, one thing is clear: Tesla’s stripped-down versions of the Model Y and Model 3 failed to reverse the negative trend for the US carmaker. Tesla had introduced these models in the US in October to mitigate the impact of the subsidy cuts. The new versions are priced around $5,000 lower than the previous base models. “The drop certainly shows there is not enough demand for the Standard variants that were supposed to boost sales after the tax credit expiry,” Stephanie Valdez Streaty, Director of Industry Insights at Cox, told Reuters. “What’s also happening is Standard sales are cannibalizing into sales of Premium versions, especially the Model 3.” She further elaborated: “Tesla has a serious challenge on its hands next year when several other automakers are planning to roll out cheaper vehicles that are also full of fun features. So the answer is that Tesla needs a completely new vehicle in its fleet. Period.”Industry experts also interpret Tesla’s introduction of zero-per-cent financing offers for the Model Y Standard shortly after its launch as a sign that sales of the new standard models are not meeting expectations. While such offers are common during the holiday season, Reuters notes that “analysts and investors said the offer on a variant that started deliveries just over a month ago is a sign of weak demand.”reuters.comThis article was first published by Cora Werwitzke for electrive’s German edition.
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