Tesla (TSLA) is offering several incentives, such as free charging and better financing deals, in the U.S. to boost demand and address a slow start to the year. This move comes as the first two months of 2025 saw a notable decline in sales in key European markets, China, and the U.S.
Among the key benefits, customers buying the Foundation Series Cybertruck on or after February 28, will receive unlimited charging at Tesla-branded Supercharger stations for the vehicle’s entire ownership period. Also, TSLA has introduced very low-interest loans, including 0% and 0.99% APR, to make it easier and more affordable for customers in the U.S. to buy new Model 3 cars.
Moreover, discounts are available on older Model Y vehicles as Tesla prepares to launch a new version. In addition, buyers of Model X and Model S cars will receive free supercharging for the car’s lifetime.
Separately, the company has disclosed an 8,000 yuan ($1,101.90) insurance subsidy for customers purchasing Model 3 vehicles in China, until March 17.
Tesla Faces Steep Sales Declines
The move comes in response to a sharp decline in sales across key markets in 2025. For instance, sales in several European markets dropped by over 40% in both January and February compared to the previous year.
Similarly, in China, sales fell by 51% and 12% year-over-year in February and January, respectively. These declines reflect the challenges Tesla is facing in maintaining demand amid growing competition and market pressures.
Key Reasons at Play for TSLA’s Sales Decline
Intense competition in the EV market from popular automakers like Volkswagen, BMW, and Mercedes, as well as Chinese EV brands has hurt TSLA’s performance.
Also, in key markets like the U.S., Europe, and China, market saturation is making growth harder for Tesla. On top of this, slowing economic growth and inflationary pressures in some regions have impacted consumer spending, reducing demand for expensive items like electric cars.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and 10 Sells assigned in the last three months. At $347.59, the average Tesla price target implies a 27.77% upside potential. The stock has gained 18.19% over the past six months.
