Why Have Tesla Model S Sales Declined?

Tesla Model S 2021 MY image

From January to October 2021, about 2,700 Tesla Model S sedans were sold in the United States – almost three times less than in the same period of 2020.

Sales of the model in Europe are shocking. Only 128 people bought the once-popular electric vehicle this year. Well, why has consumer interest in the Tesla Model S dropped?

Indeed, as L`Automobile magazine notes, the Model S is actually not available for all budgets. At the same time, the price of $80-100K before restyling was not an obstacle for sales, which were better. In 2020, the Tesla Model S was the most common sedan in its class. However, in 2021 its sales decreased.

The model needs an urgent refresh!

The drop in demand can be explained by several reasons. First of all, Tesla introduced a restyled model at the beginning of the year. This was only the second update in the history of the car, and the Model S is no longer young.

Tesla launched the electric sedan 12 years ago in 2009. Therefore, fans of new products are more likely to pay attention to the new Model 3 or the Model Y crossover, which has recently entered production.

L`Automobile reports, by the way, that those who want to purchase the restyled Model S should be patient, because the first examples are not expected before 2022, and possibly the end of 2022. There is no need to wait long for the Model 3 or the Model Y. So, it should come as no surprise that many will prefer them.

There is another reason. Not everyone will overpay twice for the large driving range of the Model S, as in everyday use such a range is not needed.

Finally, given the semiconductor chip shortage, manufacturers are forced to make strategic choices and favor certain vehicles over others that are less profitable or simply less common. High demand for the Model 3 and the launch of the Model Y may explain the dramatic decline of the Model S sales.

Now some facts. In the United States, 2,700 Tesla Model S cars, 36,400 Tesla Model 3s and 44,800 Tesla Model Ys were sold from the beginning of the year through September.

Tesla Model Y 2021 MY image
Tesla Model Y 2021 MY

In Europe, the Tesla Model 3 became a bestseller in the first 9 months of 2021: not among electric vehicles, but in the overall rating. This year, almost 25,000 Europeans have already purchased the Tesla Model 3. For comparison, sales of the Renault Clio, which comes second, slightly exceeded 18,000 vehicles.

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