Tesla offering major discounts and incentives in the US amid slumping sales: Full details

Tesla has reportedly rolled out a series of significant discounts and incentives in the United States in response to declining sales and growing concerns around its brand reputation.

According to a report by Electrek, Tesla has expanded its existing $1,000 military discount to include a broader group of eligible individuals. The new offer now extends to students, teachers, first responders, military veterans, active-duty members, retirees, their spouses, and surviving spouses. This incentive applies to the purchase of any new Tesla vehicle.

Tesla is also targeting ride-share drivers with a compelling new promotion. Eligible Lyft drivers can receive $1,000 in Tesla credits upon vehicle delivery, along with an additional $1,000 from Lyft after completing 100 trips by July 13, 2025.

In a statement, the company clarified: “Tesla Credits can be used toward Supercharging, a new Tesla vehicle, service appointments, or select Tesla Shop or upgrade purchases. Offer available to active Lyft drivers in good standing.”

Tesla is reportedly contacting Cybertruck reservation holders with a limited-time offer on its Full Self-Driving (FSD) feature. An email from the company notes: “As an early reservation holder, you have access to a reserved Full Self-Driving (Supervised) price of $7,000. To keep this price, you’ll need to take delivery by June 15, 2025. After that, the FSD (Supervised) system will be available at the current market price of $8,000.”

Additional Financing Offers
Tesla is also offering 0% financing on the Model 3 and 1.99% on the Model Y, underscoring the company's efforts to boost demand amid rising inventory. Global sales reportedly missed targets by 50,000 units, initially blamed on production line adjustments for the updated Model Y. However, despite production resuming, the refreshed Model Y continues to face sluggish demand.

These mid-quarter incentives — typically reserved for quarter-end pushes — along with similar strategies in Europe and China, reflect mounting pressure on Tesla's global sales performance.

Recently, Tesla employees published an open letter calling for CEO Elon Musk's removal, citing reputational damage and widespread demand issues. The letter pointed to large numbers of unsold Model Ys across U.S. locations.

Tesla reported a 71% drop in profits for the first quarter of the year, intensifying investor scrutiny.

Despite these concerns, Tesla’s stock surged following Musk's announcement that he would reduce his involvement in Washington affairs to focus more on the company. Shares closed at $347 on Wednesday, up 4% for the day and over 50% since hitting a low in April.