Tesla's U.S. sales took a major hit in November, falling 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 cushion the blow with more discounts.
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The U.S. electric vehicle market has been in turmoil since the federal tax credit for electric vehicles expired at the end of September. We expected a period of decline after the surge in purchases in the third quarter, but the numbers for November are impressive.
According to new estimates from Cox Automotive, Tesla sold about 39,800 vehicles in the U.S. in November. This represents a decline of about 23% compared to the 51,513 vehicles delivered in November 2024. It is also reported to be Tesla's lowest monthly sales volume in the U.S. since January 2022.
It's important to note that Tesla doesn't publish monthly sales numbers, so these are estimates based on data collected by Cox.
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The decline comes despite Tesla’s best efforts to boost demand. After the expiration of the $7,500 federal tax credit, the automaker launched new “Standard” versions of the Model 3 and Model Y in October, priced about $5,000 lower than previous base models to offset the loss of incentive. Those vehicles are expected to start contributing more meaningfully to sales next year.
However, Cox Automotive argues that this strategy may have minimal impact. While a 23% decline looks bad on paper, it’s worth noting that Tesla is weathering the storm better than the rest of the electric vehicle market. Overall U.S. electric vehicle sales reportedly fell more than 41% in November. Because Tesla’s decline was less severe than that of its competitors, the company saw its market share increase to 56.7%, up from 43.1% a year ago.
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Most other automakers relied heavily on the tax credit to promote their electric inventory, and without it, they are seeing demand disappear much faster than Tesla.
