Tesla’s U.S. Market Share Drops to Lowest Level Since 2017

Tesla’s U.S. market share fell to its lowest point in nearly eight years in August, as buyers opted for electric vehicles (EVs) from a growing roster of rivals over the company’s aging lineup, Reuters reported, citing data from Cox Automotive.

The expiry of federal tax credits at the end of the month is expected to increase the financial strain on Tesla and others. (Photo: Steve Jurvetson Flickr) 

The drop underscores the pressure from automakers offering aggressive EV incentives at a time of industry uncertainty.

Analysts expect EV sales to remain strong through September but anticipate a slowdown once federal tax credits expire at the end of the month, increasing financial strain on Tesla and others.

Tesla, which once commanded more than 80% of the U.S. EV market, accounted for 38% of sales in August—the first time it has dipped below 40% since October 2017, when it was ramping up Model 3 production.

While competitors are launching new EVs, Tesla has shifted focus to developing robotaxis and humanoid robots, delaying and canceling plans for more affordable EV models.