US Tesla Sales Drop 23% in November Year Over Year - CleanTechnica

In November, US Tesla sales declined by 23% year-over-year, reflecting a broader downturn in electric vehicle (EV) sales following a surge in the third quarter driven by the impending expiration of the $7,500 US EV tax credit on October 1. Tesla attempted to counteract this drop by introducing lower-priced, decontented versions of the Model 3 and Model Y, reducing prices by $5,000 to $5,500. However, these cheaper models have not compensated for the loss of the tax credit, and sales have continued to fall sharply in the fourth quarter. Additionally, Tesla faces a challenge with product cannibalization, as sales of the lower-cost versions have come at the expense of higher-margin, premium Model 3 and Model Y variants. This shift is negatively impacting Tesla’s gross margins, with some estimates suggesting a significant drop in gross profit from $20 billion in 2022 to potentially as low as $7 billion in 2023. The combination of