Tesla’s US Market Share Slumps to Lowest Level Since 2017 Amid Fierce EV Competition
Tesla’s market share in the US electric vehicle (EV) market has dropped to 38%, its lowest level in nearly eight years, as competition intensifies and consumer preferences shift.
According to Cox Automotive data cited by Reuters, Tesla’s share has fallen sharply from a peak of more than 80%, last seen when the company was ramping up production of its first mass-market vehicle, the Model 3, in 2017.
The decline comes at a challenging time for the EV industry. Buyers are increasingly choosing rival electric vehicles over Tesla’s ageing line-up, while federal tax credits are set to expire at the end of September, a factor analysts say could weigh on overall sales in the coming months.
While traditional automakers are rolling out fresh EV models, Tesla has shifted its focus to robotaxis and humanoid robots, shelving or delaying plans for more affordable car models.
Much of Tesla’s lofty $1 trillion valuation depends on this pivot. On Friday, the board proposed a record $1 trillion pay package for Elon Musk, contingent on the company’s value reaching $8.5 trillion within the next decade.
For now, Tesla’s core automotive division remains its primary revenue driver. However, its most recent launch, the Cybertruck, unveiled in 2023, has failed to match the popularity of the Model 3 and Model Y, once global best-sellers.
Despite minor updates to the Model Y, demand has been softer than expected, leaving Tesla on track for a second consecutive year of declining sales.
