That Tesla Price Cut? Sales Are Still Flat

Tesla's latest price cuts aren't stopping its US sales slide. In November, the company's American deliveries sank nearly 23% from the previous year, to an estimated 39,800 vehicles—its weakest monthly total since January 2022, according to Cox Automotive data shared with Reuters. That drop came even after Tesla rolled out lower-priced "Standard" versions of its Model 3 sedan and Model Y SUV in October, trimming roughly $5,000 off the previous entry-level models to offset the loss of a federal tax break.

The strategy so far looks shaky. Cox analyst Stephanie Valdez Streaty said the cheaper trims aren't bringing in enough new buyers and are instead eating into sales of higher-priced versions, particularly the Model 3. EV demand overall has cooled since the Trump administration ended the $7,500 federal tax credit in late September: US electric-vehicle sales in November fell more than 41% year over year. That broader slump meant Tesla's market share actually grew, to 56.7% from 43.1%, even as its own sales declined. Benzinga notes that Ford also experienced a steep year-over-year sales decline (60%) for its EVs in November.

After years of rapid growth, Tesla's deliveries fell in 2024 for the first time and are expected to decline again this year as higher interest rates, aging models, and tougher competition weigh on demand, per Reuters. The Cybertruck has struggled to gain traction, and rivals are preparing a wave of cheaper EVs loaded with creative tech features. "Tesla has a serious challenge on its hands next year," Valdez Streaty says, arguing the company "needs a completely new vehicle" in its lineup.

Tesla is now dangling financing as low as 0% on the new Standard Model Y, an unusually aggressive offer so soon after launch that some investors see as a red flag. "If the demand was there they wouldn't be offering 0% financing," says financial adviser Shawn Campbell. Reuters also points to Tesla CEO Elon Musk's polarizing political activity as another roadblock for the brand. Tesla didn't respond to Reuters' request for comment.