Tesla has unleashed a wave of incentives across the United States as it races to prevent another year of falling vehicle sales, underscoring the pressure facing the world’s most valuable electric carmaker after a turbulent year.
The company is offering 0% annual percentage rate financing for up to 72 months on select Model Y Standard vehicles, alongside lease options that require no down payment. Buyers trading in petrol-powered cars are being promised up to 2,000 miles of free Supercharging, while select inventory vehicles now come with complimentary upgrades such as premium paint finishes, tow hitches, and 19-inch Nova wheels valued at up to US$1,500.
While Tesla has traditionally leaned on end-of-year promotions, the scale of the current push reflects deeper concerns. After recording its first-ever year-on-year sales decline in 2024, the company is now fighting to avoid repeating that outcome. To merely match last year’s performance, Tesla would need to deliver roughly 555,000 vehicles in the final quarter of 2025, a figure higher than any quarterly total in its history.
The challenge is compounded by mounting headwinds across Tesla’s key markets. In the United States, demand has softened following the removal of the US$7,500 federal tax credit for new electric vehicles in September, a change that triggered a sharp drop in monthly sales. In Europe, deliveries have been hit by consumer backlash linked to Elon Musk’s political positions, while in China the company is facing intense competition from fast-growing domestic EV manufacturers offering cheaper alternatives.
Despite earlier forecasts from Musk projecting sales growth of 20–30% in 2025, Tesla’s momentum has clearly slowed. The company is increasingly pivoting its narrative toward artificial intelligence, robotics, and autonomy, with products such as the steering-wheel-free Cybercab and the Optimus humanoid robot positioned as future growth engines.
For now, however, Tesla’s immediate priority is clearing inventory and stabilising sales volumes. The aggressive discounts suggest a company determined to defend its market position, even as the broader EV landscape becomes more competitive and less forgiving.
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