Part 7/12:

Tesla’s Sales Decline: A Sign of Market Maturity?

While traditional automakers are stumbling, Tesla also reveals signs of trouble, declaring a 23% drop in sales during Q4—though this data appears to be month-over-month or year-over-year depending on interpretation. The end of federal subsidies, such as the Inflation Reduction Act (IRA) credits, has impacted demand, causing a sharp decline.

The big question is whether this decline is a short-term blip or part of a longer-term trend. Customers who had planned to buy EVs before subsidies expired rushed their purchases, leading to a sales spike in prior months. With incentives gone, Tesla and others see their sales slump, raising concerns about the sustainability of growth without government support.