Tesla’s U.S. sales fell to their lowest level in nearly four years in November, even after the automaker introduced lower-priced versions of its best-selling models, according to data cited by Reuters.
Citing figures from Cox Automotive, Reuters reported that Tesla sold about 39,800 electric vehicles in the United States in November, down 23% from 51,513 units a year earlier. The company last posted similarly low monthly sales volumes in 2022. The decline followed the end of the $7,500 federal EV tax credit in September, after policy changes under the Trump administration.
See also: Tesla Rolls Out 2025 Holiday Software Update, Featuring AI Navigation and New Games
The broader U.S. electric vehicle market also weakened sharply. Cox Automotive estimates overall EV sales fell about 41% year-on-year in November. As a result, Tesla’s market share increased to 56% from 43%, despite the drop in its own deliveries.
Tesla had rolled out lower-priced “Standard” versions of the Model Y and Model 3 in October, priced about $5,000 below previous base models, in an effort to cushion the impact of subsidy cuts. The move, however, has yet to revive demand. “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 Automotive, told Reuters.
See also: Tesla Rolls Out New Financing and Leasing Incentives in U.S. Year-End Sales Push
She added that sales of the cheaper versions may be eroding demand for higher-margin models. “What’s also happening is Standard sales are cannibalizing into sales of Premium versions, especially the Model 3,” Valdez Streaty said. She warned that competition could intensify next year as rivals prepare to launch more affordable electric vehicles with advanced features, arguing that “Tesla needs a completely new vehicle in its fleet. Period.”
Analysts also pointed to Tesla’s decision to offer zero-percent financing on the Model Y Standard shortly after its launch as a sign of weaker-than-expected demand. While promotional financing is common during the holiday season, Reuters noted that “analysts and investors said the offer on a variant that started deliveries just over a month ago is a sign of weak demand.”