Pakistan, May 27 -- Tesla's Model Y, once promoted as a game-changer in the electric vehicle (EV) market, is now struggling to gain traction with buyers. Industry analysts report that the vehicle is sitting unsold on dealership lots across Europe and the United States, raising concerns about falling demand in an increasingly competitive EV landscape.

In response, Tesla has launched aggressive promotional offers, including 0% financing-an unusual step for a new model. Experts say these early discounts signal deeper issues. "Why would you offer heavy incentives so soon? That suggests a serious demand problem," said Loren McDonald, chief analyst at EV data firm Paren.

Tesla's dominance in the EV sector is now being challenged by both legac...