American EV company Tesla’s sales have declined for the fourth consecutive month at the start of 2026, following a turbulent January.
Reports from Motor Intelligence state that Tesla sold 40,100 units in January 2026, including 11,227 cars and 28,873 trucks. This represents a decrease from the total 48,500 units sold in January 2025, an estimated 17% drop in sales.
Since Tesla does not publicly report its sales figures, this number represents the best available estimate, showing a month-to-month trend of declining demand for the company in the United States.
Adding to its challenges, the automaker has now seen declines for four consecutive months, suggesting that Tesla could face a challenging 2026. There are several hurdles ahead.
Tesla Has Already Halted Model S and Model X Models
To address falling sales, Tesla announced at the end of January that it would discontinue the Model S and Model X after 13 and 11 years in production, respectively.
Tesla CEO Elon Musk stated the reason for this was “because we’re really moving into a future that is based on autonomy,” referring to autonomous technology.
But with the Model S and Model X being discontinued, two of the most iconic EV models will be retired at the end of next quarter. These vehicles can be seen on all corners of the planet and have become two of the most renowned EV options in the United States.
The EV Tax Credit Expired
After the introduction of the Inflation Reduction Act of 2022 during the Joe Biden administration, consumers could purchase new EVs with a tax credit of up to $7,500 and up to $4,000 for used EVs.
Effectively, given how expensive EVs are, this made the price cheaper for consumers if they wished to purchase the car and Tesla’s model was included. But that opportunity has since been taken away under Donald Trump’s One Big Beautiful Bill Act, which took effect on September 30, 2025.
As a result, EV sales took a nosedive, including Tesla’s models, meaning fewer customers are considering purchasing them now that the tax incentives are gone.
Tesla Set for a Turbulent 2026?
By all accounts, Tesla looks set to embark on a difficult path for 2026.
More statistics from Motor Intelligence show that fewer and fewer people in the US are purchasing any Tesla model, with 568,454 units sold in 2025 compared to 625,712 in 2024. A sharp 10% decrease indicates a worrying trend for the Austin-based operation.
Beyond operational challenges, Electrek reported that Tesla’s brand value collapsed by 36% in 2025, a loss of $15.4 billion. While declining sales played a role, Musk’s political ties and international interests may have played a role.
As of January 2026, Tesla’s drop in stock value places it below Toyota, Mercedes-Benz, Volkswagen, Porsche, and BMW.