Tesla’s U.S. market share drops to a near eight-year low in August- report

Investing.com -- Tesla’s share of the U.S. electric vehicle market fell to its lowest level since 2017 in August as buyers opted for models from rival automakers, according to a report from Reuters.

Data from Cox Automotive showed Tesla accounted for 38% of U.S. EV sales last month, dropping below the 40% threshold for the first time since October 2017, Reuters stated.

The slowdown came as competitors such as Hyundai, Kia, Toyota, and Honda stepped up with incentives that boosted their EV sales by as much as 120% in July.

Stephanie Valdez Streaty, director of industry insights at Cox, told Reuters: “I know they’re positioning themselves as a robotics, AI company. But when you’re a car company, when you don’t have new products, your share will start to decline.”

Tesla’s last major release was the Cybertruck in 2023, which failed to match the popularity of its Model 3 sedan or Model Y SUV.

Although the Model Y was refreshed this year, changes have not met expectations, and Tesla is heading toward a second straight year of declining sales.

The competition is being fuelled by both generous consumer deals and the looming expiration of U.S. federal tax credits at the end of September, which analysts expect will continue to lift EV sales in the short term.

Reuters noted that Tesla’s U.S. market share was as high as 80% in previous years but has steadily eroded as rivals expanded their lineups.

While Tesla still grew sales in August by 3.1%, overall EV market growth was 14%, underlining the company’s relative underperformance.

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