U.S. sales for Tesla plunged to a near four-year low in November, dropping to approximately 39,800 vehicles, according to a Reuters report.

This represents a sharp decline of nearly 23% from the 51,513 units sold in November 2024 and marks the company’s lowest monthly sales volume in the U.S. since January 2022, according to exclusive estimates from Cox Automotive.

The slump occurred despite Tesla’s proactive launch of new, cheaper “Standard” versions of its best-selling Model Y SUV and Model 3 compact sedan in October, which were priced approximately $5,000 below the previous base models.

The Impact of the Tax Credit Expiration

The primary headwind for the entire U.S. Electric Vehicle (EV) market was the expiration of the $7,500 federal tax credit at the end of September, which was rescinded by the Trump administration. This incentive’s end triggered a rush of purchases in Q3 2025 and an anticipated “hangover period” in the following months.

The overall U.S. EV market was hit severely, with sales plummeting by more than 41% in November. However, while Tesla’s own sales declined, the relatively smaller percentage drop allowed the company to significantly increase its market share to 56.7%, up from 43.1% a year earlier. This suggests that despite its struggles, Tesla is weathering the market contraction better than most of its competitors.

Cannibalization and Weak Demand for Standard Variants

The core strategic challenge for Tesla is that the introduction of the cheaper Standard variants has failed to generate sufficient incremental demand to offset the loss of the tax credit.

“The drop certainly shows there is not enough demand for the Standard variants that were supposed to boost sales after the tax credit expiry,” said Stephanie Valdez Streaty, Cox’s director of industry insights.

She added that an additional concern is that sales of the lower-cost Standard versions are cannibalizing demand for the higher-margin Premium versions, particularly the Model 3.

To combat what analysts view as weak demand, Tesla is resorting to aggressive incentives, including offering 0% financing on the Standard Model Y—an unusually steep promotion for a variant that only began deliveries a month prior. The availability of both Standard models in inventory with reduced pricing further supports the view that the market is not absorbing the new supply as quickly as anticipated. Shawn Campbell, an adviser at Camelthorn Investments, noted, “I think the bottom line is, if the demand was there they wouldn’t be offering 0% financing.”

Old Models Meet New Competition

The sales slowdown extends a broader trend for Tesla. Deliveries fell for the first time in years during 2024 and are expected to drop again this year, pressured by high borrowing costs and intensifying global competition.

Tesla’s current lineup is aging, with minor refreshes, and the company has not introduced a completely new volume vehicle since its struggle with the Cybertruck pickup. The long-term $1.4 trillion valuation of the company is tied less to current vehicle sales and more to the successful transition to robotaxis and humanoid robots. However, without compelling new vehicles, the near-term revenue stream is under threat.

Cox’s Streaty was direct in her assessment of the competitive threat: “Tesla has a serious challenge on its hands next year when several other automakers are planning to roll out cheaper vehicles that are also full of fun features. So the answer is that Tesla needs a completely new vehicle in its fleet. Period.”

Adding to the demand issue, CEO Elon Musk’s political rhetoric and associations have reportedly sparked protests and hurt Tesla’s brand image, further complicating the sales environment in a market where brand perception plays a significant role. The solution, analysts conclude, must ultimately come in the form of “new, fresh models” to reinvigorate demand and sustain momentum.

Gold pushed to its highest level in nearly two months on Friday, powered by a weaker dollar, growing expectations of additional U.S. interest rate cuts, and a fresh wave of safe-haven appetite linked to economic and geopolitical tension.

Silver extended an extraordinary 2025 breakout, shattering another record and underscoring a year in which industrial metals have outperformed even the most bullish projections.

Spot gold rose 1% to $4,327.31 an ounce by 1248 GMT, its strongest reading since October 21 and enough to secure a 3.1% gain for the week. The U.S. futures market tracked the same trajectory, with contracts climbing 1.2% to $4,363.20.

A softer dollar has been central to gold’s latest move. The U.S. currency drifted near a two-month low and was heading for a third consecutive weekly slide, easing pressure on commodity prices globally and making bullion more attractive for international buyers. The dollar’s retreat has been tied partly to weakening U.S. labor data, including a spike in weekly jobless claims — the largest increase in almost four and a half years. That jump erased the sharp drop seen the previous week and raised doubts about the durability of U.S. labor market resilience.

Market analysts said the labor data injected a new layer of caution into investor sentiment. Zain Vawda of MarketPulse by OANDA described gold’s upward push as a combination of economic nerves and geopolitical unease.

“The sharp rise in U.S. weekly jobless claims as well as U.S.-Venezuela tensions are underpinning gold and keeping haven demand strong,” he said.

The Federal Reserve’s third rate cut of the year — a 25-basis-point reduction announced on Wednesday — added more fuel to the metal’s momentum. Although the Fed signaled a more measured approach to further easing, markets have already priced in two rate cuts for 2026. That expectation, combined with softening labor indicators, has strengthened the appeal of non-yielding assets like gold, which typically benefit when borrowing costs fall and real yields weaken.

Attention now shifts to next week’s U.S. non-farm payrolls report, which is expected to play a critical role in shaping near-term Fed expectations. A weak reading would likely deepen the case for lower U.S. rates and could drive bullion toward an even stronger first quarter in 2026.

A separate support pillar emerged from geopolitical tensions involving Washington and Caracas. The U.S. government is preparing to intercept additional ships carrying Venezuelan oil after seizing a tanker this week. The incident heightened anxiety in energy markets and helped push investors toward traditional hedges. Tense energy corridors have historically generated rapid inflows into gold, especially when traders fear disruptions to oil supply routes or a slide in diplomatic stability.

In Asia, the response to high global prices was visible in physical markets. Indian gold dealers widened discounts this week, even though the country is in the middle of the wedding season, traditionally the strongest period for demand. Buyers have been unwilling to absorb prices at current levels. Demand in China followed a similar path, with elevated spot levels discouraging fresh purchases.

Silver, meanwhile, staged another dramatic climb, touching a new record of $64.56 an ounce before easing slightly to $64.09. The metal is poised for a 10% weekly surge and has more than doubled this year. Industrial consumption has remained the dominant force behind silver’s rise, driven by booming demand from solar panel manufacturers, electric vehicle producers, semiconductor fabrication, and emerging energy-storage technologies.

Global inventories have been sliding for months, tightening supply conditions in key hubs and lifting long-term price projections. Silver’s inclusion on the U.S. critical minerals list earlier this year added institutional weight to its rally, making it far more central to U.S. strategic supply planning.

Ole Hansen of Saxo Bank traced the rally to a blend of real-economy demand, thinning inventory levels, and heavy speculative flows.

“Silver is supported by industrial demand amid fears of shortages, a continued tight market, and the speculative frenzy, mostly from retail investors which has helped drive inflows to Silver ETFs,” he said.

Other precious metals gained altitude as well. Platinum rose 3.2% to $1,750.35, and palladium climbed 2.6% to $1,523.10, putting both metals on track for solid weekly gains after a sluggish first half of the year.

Taken together, gold’s steady climb, silver’s blistering rally, and the broader surge across the complex suggest that investors are positioning for an uncertain 2026. Economic signals from the United States have started to wobble, geopolitical tensions remain unstable, and the Federal Reserve is edging deeper into an easing cycle, even if cautiously.

In that environment, the market has migrated back toward precious metals with a level of conviction that had been absent for months — marking a decisive shift in global trading sentiment as the year draws to a close.