Tesla’s US sales have taken a significant hit in November, dropping to just 39,800 units according to new data. This comes as the market adjusts to the expiration of the federal tax credit, despite Tesla’s attempt to mitigate the blow with more discounts.
Since the federal EV tax credit expired at the end of September, the US electric vehicle market has been in a bit of a turmoil. We expected a hangover period after the rush to buy in Q3, but the numbers for November are stark.
According to new estimates from Cox Automotive (via Reuters), Tesla sold approximately 39,800 vehicles in the US in November.
That represents a roughly 23% drop compared to the 51,513 vehicles delivered in November 2024. It is also reportedly Tesla’s lowest monthly sales volume in the US since January 2022.
It’s important to note that Tesla doesn’t release monthly sales numbers and therefore, those are estimates based on data collected by Cox.
The drop comes despite Tesla’s best efforts to stimulate demand. Following the expiration of the $7,500 federal tax credit, the automaker launched new “Standard” range versions of the Model 3 and Model Y in October, priced roughly $5,000 lower than the previous base models to offset the loss of the incentive.
Those vehicles are expected to start more meaningfully contributing to sales next year.
However, Cox Automotive suggests this strategy could have a minimal impact. Stephanie Valdez Streaty, Cox’s director of industry insights, noted:
“The drop certainly shows there is not enough demand for the Standard variants that were supposed to boost sales after the tax credit expiry. What’s also happening is Standard sales are cannibalizing into sales of Premium versions, especially the Model 3.”
While a 23% drop looks bad on paper, it is worth noting that Tesla is actually weathering the storm better than the rest of the EV market.
Overall US EV sales reportedly plummeted by over 41% in November. Because Tesla’s decline was less severe than its competitors, the company actually saw its market share increase to 56.7%, up from 43.1% a year ago.
Most other automakers relied heavily on the tax credit to move their electric inventory, and without it, they are seeing demand evaporate much faster than Tesla.
Electrek’s Take
Top comment by Matt
Good. Maybe this will finally push them to push their products forward. Not likely but would love to see an upgrade to 800 V architecture in Model 3/Y at minimum. I think the only way to justify the continued existence of the Model S/X is if they can get their range >500 miles using new battery architecture.
It’s sad to see. Elon Musk, Tesla’s CEO, pushed for this to happen, and he always said that he believed Tesla would fare better than other automakers without the tax credit. He was right. The sad part is that it goes completely against Tesla’s mission to accelerate the advent of electric transportation.
Tesla used US incentives as a ladder to reach volume production, and as soon as it did, it pulled the ladder behind it so others couldn’t use it.
What a shame.
And all for what? To be a bigger fish in a smaller pond? Because that’s only going to work in the US. In Europe and China, Tesla’s sales are declining, while other automakers’ EV sales are surging.
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