Warning Signs for Tesla: New Model Y Struggles to Find Buyers

Tesla’s latest Model Y release was supposed to be a game-changer. Instead, it’s raising eyebrows across the automotive industry for all the wrong reasons.

The Cool Down reports that industry analysts reveal a troubling pattern: Tesla’s new Model Y models are sitting untouched on dealership lots across the country, a surprising twist for a vehicle hyped as one of the year’s biggest EV launches.

The telltale signs are there. Tesla is already offering 0% financing on the Model Y—an unusually aggressive tactic for a model so fresh out of the gate. “Why would you discount and have all these incentives and offers literally out of the gate?” asked Loren McDonald, chief analyst at EV data firm Paren. “That just doesn’t make sense when your margins are already at multi-year lows. That suggests very strongly that there is a demand problem.”

While Tesla’s global EV dominance remains intact, the cracks are showing. Sales of competing EVs from rivals like Ford, Hyundai, and even upstarts like Rivian and BYD have surged, while Tesla’s numbers have been slipping. Some blame the growing competition, while others point to the controversies surrounding CEO Elon Musk that have cast a shadow over the brand.

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With Model Y sales stalling, Tesla isn’t sitting idle. The company has been promoting the model with heavy incentives and continues work on future projects like the much-discussed Cybertaxi. There are also whispers of cheaper versions of the Model Y and Model S in the pipeline.

But for now, the Model Y’s underwhelming launch highlights a new reality for Tesla: the days of instant sellouts and long waitlists may be numbered.