Tesla Faces Second Year of Declining Sales Amid Production and Policy Challenges
Tesla's delivery outlook dims as analysts project a second consecutive year of sales decline. Fourth-quarter deliveries are expected to fall 10-15% year-over-year, with full-year 2023 volumes potentially dropping over 8% to 1.6 million vehicles.
The automaker's production faced headwinds early this year when factory retooling for the Model Y refresh caused shutdowns. Controversy surrounding CEO Elon Musk's political engagements further clouded the company's trajectory.
A temporary bright spot emerged in Q3 when U.S. buyers rushed to claim expiring EV tax credits, pushing deliveries to record levels. Tesla now attempts to mitigate the incentive loss by introducing lower-cost vehicle variants.