Tesla Sales Decline and Future Prospects
Tesla’s electric vehicle (EV) deliveries have dropped by 13% year over year for the past two quarters, attributed to high interest rates and the removal of federal EV tax credits. This decline is particularly driven by decreased sales of the Model Y in the U.S., while sales of the Model 3 have risen by nearly 38% year to date.
The company plans to introduce an affordable Model Y later this year, which may help stimulate sales alongside potential lower interest rates. CEO Elon Musk indicated that Tesla expects challenging quarters ahead, but believes future rollouts of robotaxi services and unsupervised full self-driving technology will play a critical role in the company’s recovery and market share maintenance.
Currently, Tesla holds a mid-40% share of the U.S. EV market with an operating profit margin of 4.1% as of Q2. The rollout of its dedicated robotaxi product, Cybercab, is set for 2026, and the success of these initiatives will heavily influence Tesla’s performance in the coming year.
