---
title: "Tesla Loses Ground: US Market Share Plunges to Eight-Year Low"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-09-08T13:59:07+00:00"
modified: "2025-09-08T13:59:07+00:00"
date: 2025-09-08
canonical: "https://www.share-talk.com/tesla-loses-ground-us-market-share-plunges-to-eight-year-low/"
category: "Automobiles, Parts & Engineering"
categories: ["Automobiles, Parts & Engineering", "Technology", "Technology, Media & Telecoms"]
tags: ["automaker", "BYD", "cars", "china", "COVID", "Cybertruck", "Donald Trump", "electric car", "Elon Musk", "EVs", "Huangpu River", "lockdown", "Model 3", "Model Y", "shanghai", "Tesla", "USA", "vehicles"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/Tesla.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Tesla Loses Ground: US Market Share Plunges to Eight-Year Low

**Published:** September 8, 2025
**Author:** sharetalk
**Categories:** Automobiles, Parts & Engineering, Technology, Technology, Media & Telecoms
**Tags:** automaker, BYD, cars, china, COVID, Cybertruck, Donald Trump, electric car, Elon Musk, EVs, Huangpu River, lockdown, Model 3, Model Y, shanghai, Tesla, USA, vehicles
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/Tesla.jpg?fit=1200%2C800&quality=89&ssl=1)

---

**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**.

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