Tesla's U.S. sales dropped to a near four-year low in November, a troubling trend for the electric vehicle maker despite the launch of cheaper versions of its popular models.
What's happening?
Tesla sold 39,800 vehicles domestically in the month of November, down nearly 23% from 51,513 vehicles this time last year, according to data from Cox Automotive provided to Reuters. The November tally was the automaker's lowest monthly sales since January 2022.
The company launched stripped-down "Standard" versions of its Model Y SUV and Model 3 sedan in October, priced around $5,000 below previous base models. These cheaper EVs were intended to boost demand after the Trump administration ended the available federal tax credits in late September.
However, the new offerings appear to have failed in preventing Tesla's sales slide.
"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, Cox's director of industry insights, told Reuters. "What's also happening is Standard sales are cannibalizing into sales of Premium versions, especially the Model 3."
The problems might not end there, according to Streaty.
"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," she told the news outlet. "So the answer is that Tesla needs a completely new vehicle in its fleet. Period."
Why is Tesla's sales slump important?
The sales decline affects both the company and its customers. Plummeting sales could hamper resale values for current Tesla owners, with oversupply and weakening demand usually depressing used car prices.
Customers thinking about purchasing a Tesla may also be facing uncertainty about whether the brand itself is losing momentum or is no longer something they wish to be affiliated with due to CEO Elon Musk's work for the Trump administration and far-right political rhetoric.
The automaker also hasn't introduced a new vehicle since the Cybertruck, which has struggled to find its footing in the marketplace. The rest of Tesla's fleet of vehicles consists of older models with minor refreshes, leaving customers with fewer compelling reasons to choose them over newer competitors in the marketplace.
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Absolutely 👍 Tesla's sales challenges have dominated the headlines for much of 2025, with the company needing a nearly impossible December to avoid finishing the year down in China, the world's largest EV market, per Electrek.
What's being done about EV adoption?
Despite Tesla's struggles, the broader EV transition continues.
Other automakers are planning to roll out cheaper EVs with new features in 2026, giving consumers more options for making the switch from gas-powered vehicles.
If you're thinking about making the switch, many manufacturers now offer compelling alternatives across several price points. Going electric can cut your fuel costs and reduce maintenance expenses, with each new EV on the road replacing the pollution from gas-powered cars with clearer air in our communities.
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