Tesla, the world’s most popular electric car company, is currently going through a difficult sales phase. Its sales in the US fell sharply, hitting a four-year low, while its entry into emerging markets such as India also fell short of expectations. Despite the launch of affordable models, the company is facing declining demand, raising serious questions about the future strategy of the world’s largest automaker. What the numbers say A recent Reuters report citing Cox Automotive said that Tesla’s US sales fell about 23% in November to 39,800 units, the lowest figure since January 2022. Interestingly, this decline came at a time when the company introduced cheaper standard variants of its most popular electric vehicles, the Model Y had even cheaper models and the Model Y failed to keep up. hoped that these lower-priced models, which cost about $5,000 less, would help meet demand after the tax credit expired. However, demand across the US EV market has fallen sharply since the Trump administration eliminated the $7,500 federal tax credit in late September. According to Stephanie Valdez Streety, director of industry insights at Cox, “This decline clearly shows that Tesla’s cheaper standard variants are not as in demand as expected. Moreover, their introduction has had an impact on the sales of premium models, especially the Model 3. Standard variants are very important for the company as Tesla is currently working on two big plans for the future – robotaxi.” Tesla’s slow start in India Tesla entered India’s fast-growing luxury EV market in September, but initial sales fell short of expectations. According to the state vehicle portal, Tesla sold just 157 units between September and November. In November, Tesla’s sales were just 48 units, while BMW sold 267 electric cars in the same month. Mercedes-Benz also maintains its strong hold in the premium segment. Tesla entered India in July this year with the Model Y electric SUV. This electric car is brought to India as a fully imported vehicle. In India, its prices start at ₹59.89 lakh and go up to ₹73.89 lakh (ex-showroom) for the top model. Although the launch has generated a lot of excitement, early data shows that the company faces stiff competition from existing luxury brands. Growing network in India Despite slow sales in India, Tesla is expanding its network. On July 15, the company opened its first Indian showroom at Bandra Kurla Complex (BKC) in Mumbai. Later, on August 11, the company opened its next showroom in Aerocity, Delhi. Recently, the country’s first Tesla center was opened at Orchid Business Park in Sector 48, Gurugram. The facility provides retail, after sales service, delivery and charging infrastructure under one roof.