- Sales of Tesla vehicles in the U.S. Fell 16% in April, according to data from S&P Global Mobility cited by trade publication Automotive News. With a share of 40%, even the slightest weakness at Elon Musk’s company has a disproportionate effect on monthly EV sales. Musk meanwhile has dismissed concerns he has a demand problem on his hands.
When Tesla sneezes, the entire U.S. Electric vehicle market catches a cold.
Elon Musk’s company led overall sales of zero-emission cars lower in April, marking the first year-on-year drop in EV sales for 14 months, according to Automotive News.
The Detroit-based trade publication cited data published by S&P Global Mobility that showed Americans bought roughly 97,800 EVs, or 4.4% fewer than last year.
The chief culprit behind the decline was Tesla, whose volumes sank 16% to just below 40,000 for April. By comparison Chevrolet saw its business triple from comparatively low levels on the back of the new Equinox crossover, which blew past all Tesla models in terms of actual real world range.
Neither Tesla nor S&P Global Mobility responded to a request from Coins2Day made outside normal business hours.
Tesla’s 40% share means it dictates the direction of America’s EV market
Musk made EVs desirable in the U.S., first in 2012 with the Model S sedan that revolutionized the industry, and then eight years later landing a smash hit with the more affordable Model Y crossover.
Despite his success, the rest of the U.S. Industry either could not—in the case of EV upstarts like Rivian—or would not follow. Even in its currently weakened state, Tesla still accounts for roughly four out of every 10 EVs sold in the United States, versus market shares of below 10% for its two closest rivals—Chevrolet and Ford.
With such a dominant position, even the slightest declines have a disproportionately large effect on the overall market.
Normally sales figures for April published in June would be considered stale at this point, but there is a dearth of timely data when it comes to the size of the U.S. Electric vehicle industry. The market is a laggard compared with most other wealthy and industrialized countries, where EV demand is helped by high fuel taxes.
Musk has dismissed concerns that Tesla has a demand problem
Tesla’s poor results in the U.S. In April confirm a trend that had already emerged in Europe and China, suggesting the company will find it increasingly difficult to meet its full-year forecast for an unspecified return to growing car sales.
Sales are already down 13% in the first quarter, and June needs to be a very strong month to at least eke out stagnant volumes for the current quarter. More troubling for Tesla, there has been no indication of a new model on the horizon, beyond a seven-seat Model Y, despite Musk’s promise since April 2024 that one would launch before the end of June.
Meanwhile the CEO has aggravated some investors by consistently dismissing concerns that Tesla’s core car business is in a protracted slump, one for which he is ultimately responsible. Not only did he kill off his planned $25,000 low-cost car in favor of one without any manual controls whatsoever, his political activism has also provoked a customer boycott.
“Don’t worry about it,” he said recently, when asked about the slump in Tesla EV sales. “They’re fine.”