Amber Saitta
- It's been years since Tesla meaningfully changed the appearance of many of its cars.
- The aging vehicles have a negative impact on consumer interest, experts say.
- Investors called for more information on Tesla's new products during the earnings call Tuesday.
Tesla has a problem. Its cars are getting stale.
Sure, there's the Cybertruck — if you want a large truck and ordered early enough to actually get one.
But people looking for a flashy new design in Tesla's more traditional car lineup are stuck waiting for now.
The Model S and Model X used to be the ultimate status symbol. Some of the first Tesla owners were celebrities. In 2020, TikTok star Addison Rae made headlines when she was spotted in her bright pink Tesla Model X. Nearly four years later, the car doesn't look much different and sales are slumping.
"How long can Tesla get away with the same basic car?" Auto Trader editor Brian Moody told Business Insider. "People are fickle. They want the next new thing."
Tesla hasn't updated some of its models in years. Tesla CEO Elon Musk has said there aren't any plans to refresh the Model Y, which came out in 2020, this year. And the design of the Model S and Model X hasn't been meaningfully updated since 2021.
Instead, Tesla's playbook so far seems to be subtle refreshes that only an eagle-eyed fan would notice when driving by.
The carmaker released a refreshed Model 3 Highland earlier this year, tweaking the car's front end to make it sleeker, eliminating the stalks on the steering wheel, and adding superior suspension and sound insulation. But the average person walking by it in a parking lot could easily mistake it for the model that launched years ago.
"If you already have a Tesla there's no reason to go back and buy a new one," Edmunds' director of insight Ivan Drury told BI. "And if you're a first-time buyer, wouldn't you rather get something that's actually new?"
Tesla released its first new car in four years in November when it began deliveries of the Cybertruck, but the futuristic pickup has proven a polarizing vehicle and its over $60,000 price point means the truck might not be for the masses just yet.
"That would have been the perfect opportunity for a brand refresh," Moody said of the Cybertruck release. "If Tesla was a traditional automaker, it would filter that style down to its other vehicles."
While Musk has argued that Tesla's vehicles are never outdated due to the company's frequent software updates, Moody said new buyers are more likely to be attracted to something tangible, like a new exterior design or a new product entirely.
During Tesla's earnings call on Tuesday, Tesla shareholders were eager to learn more about new releases. Investors asked questions about timing for Tesla's revamped Roadster (which is still on the way after being shown off in 2017), its Robotaxi, and plans for a lower-cost vehicle. But Musk said little to reassure shareholders and gave vague answers, explaining that the company Robotaxi event had been delayed and reiterating that Tesla planned to unveil its cheaper EV in the first half of 2025, but failed to give any other specifics about the products.
Musk blamed the lack of details on the "Osborne effect," a theory that customers will wait to buy a product when a newer one is on the way.
"If you start announcing some great thing, it affects our near-term sales," Musk said on Tuesday.
When asked by one analyst if Tesla could filter the Cybertruck aesthetic down to other vehicles, for say a "Cyber SUV" or "Cyber van," Musk declined to talk about any future plans.
Tesla's sales have seen a downturn over the past year and the carmaker's estimated market share in the US fell below 50% for the first time in July. Data from Cox Automotive shows that while demand for Tesla's new Cybertruck is growing, the company's four other models are facing lower sales in a portion of the industry that is growing overall.
A spokesperson for Tesla did not respond to a request for comment.
Stephanie Valdez-Streaty, director at Cox Automotive Industry Insights, said in the report that as the EV market continues to expand, other automakers are ratcheting up the competition.
"This increased competition is leading to continued price pressure, gradually boosting EV adoption," Valdez-Streaty wrote. "Automakers that deliver the right product at the right price and offer an excellent consumer experience will lead the way in EV adoption."
For drivers hoping to buy a Tesla sedan or crossover with a new look this year, the message from Musk has been clear: You'll have to wait.
Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email at gkay@businessinsider.com or 248-894-6012