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Tesla U.S. Sales Sink to Near Three-Year Low as Cheaper Models Miss the Mark

Analysts say lower-priced trims have not replaced demand lost following the federal EV tax credit’s expiration.

Overview

  • Cox Automotive estimates put Tesla’s U.S. November sales at about 39,800, down nearly 23% year over year and the lowest since January 2022.
  • Tesla introduced lower-cost ‘Standard’ Model 3 and Model Y versions in October priced roughly $5,000 below prior base models to offset weaker demand.
  • Cox says the new variants drew limited incremental buyers and cannibalized higher-margin premium trims, particularly the Model 3.
  • Overall U.S. EV sales fell more than 41% in November, raising Tesla’s market share to 56.7% despite its own volume decline.
  • Tesla offered 0% financing on the Standard Model Y as analysts warn deliveries could fall again and point to product and brand headwinds.