Tesla’s Grip on the EV Market Is Being Tested by Cash-Back Deals from Rivals

Tesla’s Facing a Sales Slump in America

Tesla may have ended 2024 as the EV market leader, but 2025 has been less kind to the brand. After years of near-uninterrupted growth, Tesla is tanking its US sales. The once-unshakable demand for its core models – especially the Model 3 and Model Y – is softening as the competition catches up in technology, price, and availability.

Tesla’s rivals, unsurprisingly, are seizing this opportunity. A wave of conquest cash incentives has emerged since last year, specifically designed to draw Tesla owners away from the brand. These deals aren’t limited to trade-ins, and, in many cases, current Tesla ownership alone is enough to unlock discounts. Some programs even allow the incentives to be shared with household members or combined with other promotional offers.

That said, Tesla owners might want to shop around before upgrading to the latest model this month. These offers could provide the final nudge for those about to switch brands.

Who’s Offering What

Even before the 2026 updates arrive, Lucid is pushing hard to lure Tesla drivers with a combined $3,000 incentive – $2,000 for coming from a competing premium brand, plus another $1,000 for Tesla ownership specifically. Add in additional Lucid credits and on-site bonuses, and buyers can shave up to $11,500 off the sticker price of a Lucid Air.

Ford is taking a more mainstream approach. Current Tesla owners with a 2008 or newer model can access a $1,000 incentive when purchasing the 2025 Mustang Mach-E or F-150 Lightning. There’s no need to trade in or end an existing lease, and Ford is also throwing in a complimentary home charger with installation.

Kia’s deal is one of the most aggressive. Buyers of the new 2026 EV9 can receive $1,000 off if they own a Tesla Model 3, S, X, or Y from 2014 or later. This can be stacked with Kia’s $5,000 customer cash, cutting as much as $6,000 off the EV9’s MSRP.

BMW is offering a $1,000 credit toward select electric models, including the i5, i7, and iX, through its BEV/PHEV conquest program. Tesla owners are eligible alongside a broad range of premium EV brands. Toyota is also running a smaller regional program – $500 off a lease for Tesla drivers living in select Midwest states.

Tesla’s Upping Its Product Game

Of course, Tesla isn’t taking this competition sitting down. The Texas-based automaker has enhanced its lineup this year, beginning with the 2025 Model Y “Juniper” and carrying updates through its Model 3, while rolling out subdued changes to the Model S and X.

The Model Y’s redesign includes sleek new front and rear light bars, slimmer headlights and taillights, and the return of the traditional turn‑signal stalk. Its cabin now features ambient lighting, cooled seats, wireless charging, and a rear-seat touchscreen. The new version also adds adaptive suspension, aerodynamic wheel designs, and a roughly 10% efficiency boost, translating to an EPA-estimated 327‑mile range for the Long‑Range AWD variant.

Meanwhile, Tesla unveiled mild refreshes to the Model S and Model X. Both now include front-bumper cameras to enhance Full Self‑Driving capabilities, improved noise cancellation, refinements to suspension, and adaptive driving beams. The Model S Long Range now offers up to 410 miles – its longest ever – while ambient lighting and new paint and wheel options add to the premium cabin experience.

The Model X gets a quieter ride, updated wheel designs, adaptive headlights, and enhanced third-row space. All these improvements come with a $5,000 price increase for both models.