Why Have Tesla Mannequin S & Mannequin X Gross sales Crashed?

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Going by Kelley Blue Guide’s newest information on US EV gross sales, one factor that jumped out to be was how a lot Tesla Mannequin S and Mannequin X gross sales crashed yr over yr. There are just a few causes I feel which will have occurred, however I’ve obtained no definitive conclusion or reply on it. Googling the subject didn’t present me with any notable responses on it both.

Apparently, Tesla offered simply 1,669 Mannequin S sedans and three,338 Mannequin X SUVs within the third quarter within the US. That’s down from 3,132 Mannequin S sedans in Q3 2023 (-47%) and down from 4,699 Mannequin X SUVs in Q3 2023 (-29%). Moreover, these numbers had been down dramatically from the Q3 2022 numbers. Briefly, Mannequin X and Mannequin S gross sales have fallen off a cliff.

So, what’s going on? Is it all the way down to individuals shopping for the Mannequin 3 and Mannequin Y quite than the Mannequin S and Mannequin X increasingly? The old-school, giant fashions have misplaced their pizazz and are simply trailing off? Or is it individuals who need a big, costly Tesla shifting to a Cybertruck as a substitute? (The Cybertruck had greater than 16,000 deliveries in the identical quarter.) Is Tesla prioritizing batteries and manufacturing capability for these different fashions? (That appears unlikely, since manufacturing traces had been already arrange for the S and X and revenue margins should have been excellent, so it doesn’t appear logical to not produce as many as shoppers need.)

There are additionally issues exterior of Tesla which might be maybe at play. GM offered a whopping 4,305 GMC Hummer EVs within the third quarter, which, as you possibly can see, is extra models than the Mannequin X scored. You’ve additionally obtained a number of luxurious fashions from Mercedes, BMW, Cadillac, Genesis, and Audi. The Cadillac Lyriq is very doing properly — gross sales soared 139% yr over yr, reaching 7,224 gross sales, greater than double Mannequin X gross sales. Then there’s additionally the opposite pure-EV manufacturers. Rivian and Lucid are additionally competing with the Mannequin X and Mannequin S, respectively. Lucid Air gross sales had been up 33% yr over yr. Rivian gross sales had been down, however the firm nonetheless offered greater than 11,000 models of its R1S and R1T mixed.

If the rationale for Tesla’s dropping Mannequin X and S gross sales is rising competitors and increasingly consumers getting comfy going to those legacy auto manufacturers for his or her luxurious EVs, I’m not going to lie, that makes me suppose the Mannequin Y and Mannequin 3 may have bother on the horizon as properly. These newer Tesla fashions are getting older fast as increasingly rivals come onto the sector, and whereas the remainder of the auto trade has targeted on the upper finish of the marketplace for the transition to EVs, increasingly fashions on the extra inexpensive finish of the market are arriving. With extra competitors, can the Mannequin 3 and Mannequin Y maintain their excessive stage of gross sales, not to mention develop?

Maybe all the above elements are at play. Nonetheless, for now, I’ll assume a whole lot of would-be Mannequin S and Mannequin X consumers are shopping for the Cybertruck as a substitute — regardless that I’ve a tough time seeing how the Mannequin S and Cybertruck would have a ton of cross-shoppers. Let me know if I’m lacking an necessary issue or two.