Tesla’s Cheap Model Y and Model 3 Aren’t Slowing Down Its Sliding Sales: Report

Sales of new electric vehicles in the US have been slow in recent months. Following the expiration of federal tax credits and a moratorium on some new models completely canceledMost automakers are expected to report a serious decline in EV sales in the last months of 2025. Tesla has mostly managed to avoid this in recent history, but this year could be different.

Tesla could report its lowest US sales in four years next month Cox Automotive Data and reutersLess than 40,000 new Teslas were sold in November 2025, or about 23% fewer than the same month last year, Cybertruck, already installed Sales falling well short of projections Created by Elon Musk, about 1,200 sales were reported in November, the lowest sales so far in 2025.

Before the federal tax credit expires on September 30, Tesla introduced its Model 3 Standard and Model Y Standard Those versions were immediately ridiculed by critics and even fans of the cars due to slow charging speeds, conspicuous cost-cutting and still-out-of-reach pricing. Cox reported that sales have not been as strong as predicted, prompting Tesla to offer 0% financing and aggressive lease deals on in-stock examples.

Worse, analysts say the standard models that sell are taking away sales from the more expensive and more profitable versions of the Model 3 and Model Y.

in the other cox automotive report Released Dec. 9, all U.S. new EV sales last month were down 40% from November 2024, though slightly up from October. This was significantly contributed by the Model 3, which fell 42% compared to the same month a year ago. but even Honda Less than 1,000 Prologue SUVs moved in November compared to over 6,800 in the same month last year, and Hyundai Despite now having a third Ioniq model available, EV sales fell by more than 20% last month.

Full-year sales for all automakers will begin to be reported during the first full week of January and financial reports next month, both of which should paint a fuller picture of the health of the EV market in 2025 and the impact of the current White House administration and Congress’ emphasis on gas-powered vehicles rather than battery electric.

Tesla is suffering greatly from the decline in sales in the domestic market, a European sales decline, and aggressive competition from China’s EV Elsewhere, the company may come under pressure to rely more on its network super chargerA Troubled Robotaxi Division, And other business ventures To increase revenue. Cox thinks Tesla needs a new model and redesigned (rather than lightly modified) cars to sell. So far, automaker leaders haven’t found it necessary in the more challenging EV market.