The data indicates total sales declined almost 23% to 39,800 units from 51,513 in the same month a year prior, marking the lowest level since January 2022. This downturn occurred even after Tesla launched Standard editions of its Model Y SUV and Model 3 sedan in October, each priced roughly $5,000 less than earlier base configurations.
The revisions aimed to offset reduced consumer interest following the discontinuation of $7,500 federal incentives for electric vehicle purchases at the end of September. Analysts had anticipated the lower-priced options would lift volumes in November, but the figures suggest otherwise.
"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, said in an interview with Reuters. "What's also happening is Standard sales are cannibalizing into sales of Premium versions, especially the Model 3."
While the incentive elimination affected the broader electric vehicle sector, Tesla fared better than competitors. Nationwide electric vehicle sales decreased by more than 41% in November, yet Tesla's portion of the market climbed to 56.7% from 43.1% the previous year.
The company's current lineup, including the Cybertruck pickup introduced last year, has faced difficulties in attracting buyers. Deliveries declined for the first time in 2024 amid elevated interest rates, shifting buyer preferences, and expanded offerings from other manufacturers in various regions.
Projections point to another decrease in Tesla's annual deliveries for 2025. The firm has not debuted an entirely fresh model since the Cybertruck, relying instead on updates to established designs.
"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," Cox's Streaty said. "So the answer is that Tesla needs a completely new vehicle in its fleet. Period."
Success with the Standard models holds significance for Tesla's ongoing efforts to sustain vehicle sales and generate income while advancing toward autonomous ride-hailing services and humanoid robotics development. These areas underpin the company's $1.4 trillion valuation.
To address current softness, Tesla's U.S. website this week displayed financing rates as low as 0% for the Standard Model Y. Both the Standard Model Y and Standard Model 3 appear in inventory with adjusted pricing. Such promotions, though typical during year-end periods, signal potential overstock so soon after launch.
"I think the bottom line is, if the demand was there they wouldn't be offering 0% financing," said Shawn Campbell, an adviser at Camelthorn Investments. "The solution for the demand issue ultimately needs to be new, fresh models."
Tesla has not yet commented on the November estimates.
