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Yahoo
5 days ago
- Automotive
- Yahoo
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 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. Warning Signs for Tesla: New Model Y Struggles to Find Buyers first appeared on Men's Journal on May 26, 2025
Express Tribune
7 days ago
- Automotive
- Express Tribune
Tesla Model Y: Why the car has bombed, with reports of dwindling sales
Tesla's much-anticipated Model Y, touted as a revolutionary addition to the electric vehicle market, is facing unexpected challenges. Despite initial hype, the new model is struggling to find buyers, according to industry analysts. As reported by Reuters, many Model Y vehicles are sitting unsold on dealership lots across the European market, raising concerns about demand for the electric car. This slow uptake is also noticed in the United States. This has led to Tesla introducing 0% financing on the Model Y, an unusually aggressive marketing move for a model that is still relatively new. Loren McDonald, chief analyst at EV data firm Paren, expressed concerns about the strategy, questioning why Tesla would offer such substantial incentives so early in the model's release. "Why would you discount and have all these incentives and offers literally out of the gate? 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," McDonald said. Tesla misses out on European EV growth as Model Y fails to revive sales — Reuters (@Reuters) May 27, 2025 Tesla, which has long been the dominant player in the global electric vehicle market, now faces growing competition from established automakers like Ford and Hyundai, as well as emerging players such as Rivian and BYD. Sales from these competitors have been surging, further highlighting Tesla's declining numbers. Some observers attribute the slowdown in sales to the increased competition, while others point to the controversies surrounding Tesla CEO Elon Musk, which have cast a shadow over the brand. Despite the struggles, Tesla is not standing still. The company has ramped up its promotion of the Model Y with additional incentives and continues to push forward with future projects, including the much-discussed Cybertaxi. Speculation also suggests that more affordable versions of the Model Y and Model S could be in the works. However, the underwhelming launch of the Model Y serves as a wake-up call for Tesla, marking a shift in the EV market. The era of instant sellouts and long waitlists may be coming to an end.
Yahoo
21-05-2025
- Automotive
- Yahoo
Tesla scrambles to push sales after new models reportedlysit untouched on lots nationwide: 'That just doesn't make sense'
Tesla has found itself in yet another sticky situation, as the launch of its new and improved Model Y has not gotten off to a smooth start. According to Reuters, Tesla's launch of the Model Y has not gone according to plan. The retooled compact SUV was supposed to be one of the answers to the EV company's flagging sales in recent months, and was widely seen as one of the most anticipated debuts in the automotive industry. However, while sales data isn't yet available, there are a lot of troubling signs that analysts claim indicate that sales have not been good to this point on the Model Y. For starters, in most of the world, there is little to no wait time to get a Model Y at the moment, and Tesla is offering 0% financing on them. Given that the Model Y has only been out since January, analysts say that offering those kinds of financing deals on them is a bad sign. "Why would you discount and have all these incentives and offers literally out of the gate?" asked Loren McDonald, chief analyst with EV data firm Paren. "That just doesn't make sense when your margins are already at multiyear lows. That suggests very strongly that there is a demand problem." Tesla remains the largest EV manufacturer in the world, but the margin between its sales numbers and the sales numbers of the rest of the pack is shrinking. In many parts of Europe and the United States, EV sales numbers have continued to grow while Tesla has seen declining sales. The reasons for this are varied. Some of it is because more and more companies, including mainstream automakers like Ford, Hyundai, Honda, and General Motors, have started rolling out their own EV models, while other EV-exclusive manufacturers like Rivian and BYD have entered the market and gained an increasing foothold in recent years as well. Some of it is due to company policies and issues that have led to lawsuits painting the company in a less favorable light. And some of it is due to widespread protests of Tesla's brand over CEO Elon Musk's involvement far-right political movements in the U.S. and abroad, which has made the prospect of owning one feel like a political statement to many prospective EV buyers. Unfortunately for the EV manufacturer, all of it combines to paint a less than rosy picture for the company's outlook, even though drivers are increasingly looking to make their next car an EV. Do you think Tesla's vehicles have lost some of their appeal? Definitely No way Some models — but not others For some drivers — but not others Click your choice to see results and speak your mind. The company is clearly hoping that its offers on the Model Y will help boost sales numbers, but it's not stopping there. The EV manufacturer is also working on the Cybertaxi, and has been promising cheaper versions of the Model Y and Model S for several years now, in an effort to stay competitive in an increasingly crowded market. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
13-05-2025
- Automotive
- Yahoo
As Crisis at Tesla Deepens, a Hail Mary Is Turning Out to Be a Major Bust
Tesla investors were hopeful that the latest refresh of the EV maker's bestselling Model Y would breathe new life into plummeting sales. But say it ain't so: The addition to the company's rapidly-aging lineup, which launched in January, has turned out to be a dud — at least as far as consumer interest is concerned. Rock-bottom financing deals being offered on the car indicate just how far from being a hot ticket item they actually are, as Reuters reports. In an attempt to compete, Tesla is matching other carmakers' offerings with zero percent financing, suggesting that cars' rarity has become a thing of the past as the competition is starting to grow substantially for the Elon Musk-led firm. "Why would you discount and have all these incentives and offers literally out of the gate?" EV data firm Paren chief analyst Loren McDonald told Reuters. "That just doesn't make sense when your margins are already at multiyear lows. That suggests very strongly that there is a demand problem." Sales have fallen off a cliff, a crisis deepened by Musk's embrace of far-right ideals and amid his ongoing involvement in the Trump administration's overhaul of the US government. Sales in China have slumped significantly, while experts warn that the company is facing a "death spiral" in Europe. Despite the alarming numbers, investors have seemingly been reinvigorated by president Donald Trump pulling back on tariffs aimed at China and Musk's promises to spend more time leading the carmaker. Tesla's shares are up over 18 percent over the last five days, reentering the trillion-dollar club. But as recent history has shown, that valuation has increasingly become divorced from Tesla's structural woes and a greatly tarnished brand overall. The new Model Y — which to the average consumer is almost indistinguishable from its predecessor — likely won't be the company's saving grace, either. "No one's looking at that vehicle thinking, 'Oh, that's totally different and new,' and I think that may be part of the issue," Edmunds head of insights Jessica Caldwell told Reuters. And it's not just the new Model Y. The automaker's inventory of unsold Cybertrucks has reached a record high of over 10,000 units. So far, the company has fallen dramatically short of Musk's promises of selling a quarter million of the pickups per year. Meanwhile, Musk has bet the future of the company on a purportedly self-driving robotaxi, which will be slowly rolling out, starting in Austin this summer. "There will be millions of Teslas operating fully autonomously in the second half of next year," Musk vowed during the company's earnings call last month. But given his abysmal track record of making good on his word, that's far from being a guarantee. More on Tesla: A Tesla Dealership Manager Blamed Elon Musk for Tanking Sales and Was Immediately Fired Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Automotive
- Yahoo
National Electric Vehicle Infrastructure Formula Program funding freeze will exacerbate charging deserts, analysts say
The Trump administration's attempt to withhold funding allocated through the National Electric Vehicle Infrastructure Formula Program will intensify the division between the charging haves and have-nots. President Donald Trump's targeting of the program's funds, the subject of a lawsuit filed this week, demonstrates the president's commitment to reducing government support for an EV transition. The program is small compared to the charging infrastructure network being developed by private companies such as Tesla and ChargePoint and with site hosts such as Walmart, Circle K and Pilot. There are now 75 National Electric Vehicle Infrastructure Formula Program-funded sites open with 395 ports, making up roughly 0.7 percent of the total number of public DC fast charging stations in the U.S., according to Paren, an EV charging analytics firm. The Federal Highway Administration has been steadily approving state plans — as of Feb. 6, the agency was obligated to pay $3.27 billion of the $5 billion for states' approved plans through 2025. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. The infrastructure program was designed to solve a pressing problem — private industry has been unable or unwilling to build chargers in areas without significant EV adoption. If the Trump administration succeeds in pulling back the funds, a transition from combustion engine autos to EVs will take longer. 'What it's leading to is a charger utilization divide,' said Loren McDonald, chief analyst at Paren. 'The rich are going to get richer and the poor are going to get poorer, meaning that we're going to see more and more stations being built in Miami and Atlanta and Los Angeles and San Francisco and Austin and New York and Boston — not so much in Bismarck, N.D.' Congress appropriated $5 billion over five years for the EV infrastructure program through the Bipartisan Infrastructure Act, also known as the Infrastructure Investment and Jobs Act. The program was designed to prioritize infrastructure along highways, padding the already developing charging landscape in urban areas and in states with significant EV adoption. The intent was 'not to build a lot of stations but to be very strategic about where they were,' said McDonald. States were required to submit plans for how they intended to use the money allocated by Congress, and then they could access the funds. On Trump's first day in office, he signed a flurry of executive orders, including 'Unleashing American Energy,' which targeted measures perceived to enforce an 'electric vehicle mandate.' The order said that 'all agencies shall immediately pause the disbursement of funds appropriated' through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, 'including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program.' Then, on Feb. 6, the Federal Highway Administration said in a letter to states that it would rescind the EV infrastructure program guidance and suspend past and future approvals of state plans using the Biden-era guidance. Now, states are suing. 'The President directed agencies to withhold congressionally appropriated funds, including NEVI Formula Program funds, as a tool to terminate programs the President dislikes,' the complaint says. 'Agencies have no authority to rescind or revise statutes, or to withhold funds duly appropriated by Congress based on the President's disagreement with the policies and priorities of Congress.' Arizona, California, Colorado, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, Washington, D.C., and Wisconsin filed suit against the U.S. Department of Transportation, Secretary of Transportation Sean Duffy, the Federal Highway Administration and the acting administrator of the Federal Highway Administration Gloria Shepherd on May 7. The states cite several real-world consequences of the administration's orders to withhold funding. An awardee in California, for example, has requested to withdraw its project because of the Federal Highway Administration letter, the suit alleges. The state also reported that site hosts for charging stations decided not to enter agreements after learning that the highway administration was withholding the funds. 'The withholding of NEVI Formula Program funds threatens the successful execution of grant agreements with the awardees of California's second solicitation and will likely result in potential applicants declining to participate in the third solicitation at all,' the suit says. States are not the only entities slated to be impacted if the administration succeeds. After all, National Electric Vehicle Infrastructure Formula Program funds were intended to encourage EV adoption and soothe range anxiety for parts of the country currently underserved by charging companies. 'If you're going to interfere with and interrupt the uptake and adoption of electric vehicles, getting rid of stimulated charging infrastructure in remote areas is a very good way to do it,' said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
