Price cuts and the unveiling of the Model Y over a year before it's scheduled to go into production have raised concerns about the demand for Tesla's current vehicles.
Model 3 sales plummeted at the beginning of 2019, falling from 18,650 in November and 25,250 in December to 6,500 in January and 5,750 in February, according to Inside EVs.
While total US auto sales also fell at the beginning of this year, the drop in Model 3 sales led Vertical Group analyst and Tesla bear Gordon Johnson to say Tesla was in "demand hell."
After the Model Y's March 14 unveiling, some Wall Street analysts said the Model Y could cut into demand for the Model 3.
"Likely to cannibalize the Model 3, in our opinion," Morgan Stanley wrote in a note to investors after the Model Y reveal.