This article first appeared on GuruFocus.
Tesla (TSLA, Financials) saw its U.S. vehicle sales fall to a near four-year low in November despite rolling out cheaper versions of its best-selling electric models, according to estimates from Cox Automotive.
The car company sold roughly 39,800 cars in the U.S. in that month, which was over 23% less than the same month last year and the lowest number since January 2022. Tesla released basic versions of the Model Y and Model 3 in October that were around $5,000 less expensive than the previous base models. This was because demand fell when the $7,500 federal EV tax subsidies ran out.
Cox Automotive said demand for the new variants was insufficient to lift overall sales and instead appeared to cannibalize higher-priced Premium models, particularly the Model 3. Analysts also pointed to 0% financing offers on recently launched Standard models as a sign of weak demand.
While Tesla's sales declined, its U.S. EV market share rose to 56.7% as overall electric vehicle sales dropped more than 41% in November. The results underscore growing pressure on Tesla's aging lineup as competition intensifies and new lower-cost EVs are expected to enter the market next year.