Tesla loses ground: U.S. EV market share slips under 40% amid rising competition

Tesla has faced intense pressure in its home market as competition in the US EV space intensifies. According to data from Cox Automotive via Reuters, the carmaker’s share of the market has dropped below 40 percent for the first time since 2017.

Tesla’s market share slipped to 38 percent in August, continuing a downward trend. It fell to 42 percent in June when it sold more than 53,000 vehicles in the US. Other EV makers more than doubled their combined sales in the same month.

Tesla’s deliveries grew by 3.1 percent in August. However, the increase lagged behind the 14 percent growth recorded by the entire market.

This is a different reality for Tesla, which once commanded more than 80 percent of the US EV market. Rivals, including Hyundai, Kia, Honda, Ford, and GM, have made inroads by using deals to entice automobile shoppers. Even the launch of a refreshed Model 3 and Model Y has not been able to stanch the bleed.

Many industry watchers also link Elon Musk’s increased participation in national politics to Tesla’s cooling global sales. However, the company has recently been focusing on other businesses, including robotaxis and humanoid robots.