Tesla’s US EV market share falls to lowest level since 2017
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The news: Tesla's US market share dropped to a near eight-year low in August as buyers chose electric vehicles from a growing stable of rivals over its aging lineup, according to Cox Automotive data shared with Reuters.
The numbers: Tesla accounted for 38% of total EV sales in August, the first time it has fallen below 40% since October 2017, when it was ramping up production of the Model 3.
In July, Tesla’s market share dropped to 42% from 48.7% in June. That was the sharpest decline since March 2021. Sales rose 7% to 53,816 as overall EV sales jumped more than 24% to 128,268.
Volkswagen sales alone rose more than 450% in July. Hyundai, Honda, Kia and Toyota also drove up EV sales between 60% and 120%, boosting their market share.
Growth also slowed in August to 3.1% for Tesla, while the broader market grew by 14%.
The context: Tesla has not released a major new model since the 2023 Cybertruck, which did not match the success of the Model 3 or Model Y. The Model Y refresh also underwhelmed, and Tesla has been shifting focus to robotics and AI, with its future valuation tied to that pivot. Rivals meanwhile, have launched new EVs and offered steep incentives.
At the same time, Elon Musk’s political alignment with Donald Trump, including his involvement in efforts to reshape the US government before a public fallout, has damaged the Tesla brand.
The source: Reuters
