Tesla US Sales Drop 17% in January as Tax Credit Expiry Hits Demand

Tesla’s U.S. sales fell an estimated 17% year-over-year in January 2026, according to Motor Intelligence registration data. The automaker sold approximately 40,100 vehicles during the month, down from 48,500 units in January 2025.

The results mark the fourth consecutive month of declining domestic demand. Tesla’s U.S. registrations have now decreased in nine of the last 12 months.

The expiration of the $7,500 federal EV tax credit contributed to the decline by increasing the effective cost to consumers. This domestic downturn coincides with weakening demand in Europe and rising global competition.