Facing a surge of rival EVs, Tesla’s US market share has slipped to its lowest point in nearly eight years.
Tesla’s share of the US electric vehicle market fell to its lowest level in nearly eight years in August, according to data from Cox Automotive, as competition from established automakers and new entrants continues to intensify.
The company accounted for 38% of US EV sales last month, marking the first time its market share has dropped below 40% since October 2017, when Tesla was scaling production of the Model 3. The decline underscores the challenge Tesla faces from rivals offering fresh models and incentives at a time of broader uncertainty in the auto industry.
Analysts expect a temporary rise in EV sales through September, before demand is pressured by the expiration of federal tax credits. This dynamic could increase financial strain on Tesla and other automakers already grappling with high costs and shifting consumer demand.
Tesla, which once controlled more than 80% of the US EV market, has slowed development of lower-cost cars while focusing on longer-term bets such as autonomous vehicles and robotics. Its last new model, the Cybertruck pickup, launched in 2023 but has yet to replicate the success of the Model 3 sedan or Model Y SUV. A recent refresh of the Model Y also failed to meet consumer expectations.
Despite these pressures, Tesla’s auto business remains its primary source of revenue. The company’s board last week proposed an unprecedented $1 trillion pay package for CEO Elon Musk, tied in part to Tesla reaching a market valuation of $8.5 trillion within the next decade.
