As electric vehicle (EV) sales in the U.S. face a noticeable slowdown, it’s crucial to stay updated on the shifting landscape. The recent expiration of federal tax credits and some automakers pausing or canceling new models indicate potential challenges ahead. Tesla has successfully navigated these waters in the past, but the current environment might change that narrative.
According to Reuters and Cox Automotive data, Tesla’s U.S. sales could see their lowest figures in four years next month. Reports suggest that fewer than 40,000 Teslas were sold in November 2025, reflecting a 23% decrease compared to the same month the previous year. The highly anticipated Cybertruck has also underperformed, with only about 1,200 units sold in November, placing it at the lowest sales point for 2025.
The situation worsened as Tesla introduced the Model 3 Standard and Model Y Standard versions just before the tax credit concluded on September 30. While some expected these models to revitalize sales, they faced criticism for slow charging speeds, cost-cutting measures, and prices that still may be out of reach for many buyers. This led to Tesla offering 0% financing and aggressive leasing options, but results remain below expectations.
It’s worth noting that analysts are concerned these new Standard models could cannibalize sales of the more expensive, higher-margin versions of the Model 3 and Model Y. The broader market also reveals alarming trends: a December 9 report from Cox Automotive indicated a 40% drop in U.S. EV sales last month compared to November 2024, with the Model 3 significantly contributing to this decline, down 42% year-over-year. Notably, even major players like Honda and Hyundai faced setbacks, with Honda selling fewer than 1,000 Prologue SUVs compared to over 6,800 in November of last year.
As financial reports start rolling in during the first week of January, we’ll gain further insight into the overall health of the EV market in 2025. This will also illustrate the impact of current governmental policies focusing more on gas-powered vehicles rather than electrics.
On top of declining U.S. sales, Tesla is grappling with a steep drop in European sales and increasing competition from Chinese EV manufacturers. To sustain its revenue, Tesla may need to leverage its Supercharger network and explore other business avenues such as its struggling Robotaxi division. Analysts believe that introducing a completely new vehicle model, rather than just mild revisions to existing cars, is essential to thrive in a competitive market. As of now, Tesla leaders don’t seem to recognize this urgency.
What are the latest sales figures for Tesla’s electric vehicles?
Analysts expect that Tesla may report its lowest sales in four years next month, with fewer than 40,000 vehicles sold in November.
How has the end of the federal tax credit impacted EV sales?
The conclusion of the federal tax credit has led to a visible decline in sales, contributing to a 40% drop in overall EV sales in the U.S. for November compared to the previous year.
Are Tesla’s new standard models successful?
Despite their introduction aimed at boosting sales, the Model 3 Standard and Model Y Standard versions have faced criticism and are reportedly cannibalizing sales of higher-margin models.
What is the outlook for the EV market in 2025?
Financial reports in early January are expected to provide insight into the health of the EV market, reflecting the impact of current policies and competitive pressures.
As we monitor these developments, it’s vital to keep your finger on the pulse of the EV market. Dive deeper into related topics and insights at Moyens I/O.