Tesla Pushes Hard with New Incentives as Sales Slip

Tesla is pulling out all the stops to entice buyers as its sales continue to slide. The electric vehicle giant, long seen as the face of the EV industry, is introducing a raft of incentives and discounts to jumpstart demand.

The Cool Down reported that Tesla posted its weakest sales quarter since mid-2022, prompting the company to offer discounts for various customer groups, including special deals for Lyft drivers and subsidized interest rates. Reports suggest Tesla representatives are even personally reaching out to past leads to encourage test drives.

One commenter summed it up aptly: “They’re truly pulling all demand levers.”

Tesla’s reputation has been hit in recent years, partly due to CEO Elon Musk’s polarizing political commentary, which has made the brand less appealing to some potential buyers. However, improvements in quality and service for the Model 3 and Model Y are earning positive feedback from drivers.

Related: The Unexpected Issue Tesla’s New Release is Facing

Despite these incentives, such aggressive strategies midway through the quarter may signal deeper challenges. Some experts feel the perks are end-of-quarter level incentives despite it only being about halfway through the quarter.

While Tesla’s U.S. sales are down, global EV sales continue to rise. The company has also benefited from being the sole automaker exempt from a major automotive tariff, thanks to meeting certain compliance criteria. Still, Tesla faces stiff competition from a growing roster of EV makers offering alternatives to consumers.

Tesla owners can still tap into cost savings with EVs, including lower fuel costs, potential solar integration, and tax credits through the Inflation Reduction Act, though these incentives could be threatened by future policy changes.

As the EV market evolves, Tesla’s latest maneuvers highlight the pressure facing even industry leaders. Whether the discounts and perks will be enough to reverse the sales slump remains to be seen.

Related: Nissan to Slash 20,000 Jobs Globally. Here’s What U.S. Workers Can Expect