Tesla’s share of the U.S. electric vehicle (EV) market dropped below 40% in August for the first time since 2017, as rivals including Hyundai, Kia, Honda, Ford Motor and General Motors expanded sales at a much faster pace, according to data from Cox Automotive.
The company’s market share slipped to 38% last month, down from 42% in June, when it sold more than 53,000 vehicles in the United States. While Tesla’s deliveries rose 3.1% year-on-year in August, they lagged behind the overall EV market, which grew 14%. Competitors more than doubled their combined sales, grabbing market share from the long-dominant EV maker.
Tesla once commanded more than 80% of the U.S. EV market but has steadily lost ground as legacy automakers and newer entrants roll out a broader range of electric models.
Incentives and aggressive pricing by rivals have also helped lure consumers. Even the launch of updated versions of Tesla’s Model 3 and Model Y has not been enough to reverse the trend.
Industry analysts point to several factors behind Tesla’s slowdown, including intensifying competition, price sensitivity among U.S. buyers, and concerns over CEO Elon Musk’s increased involvement in national politics.
While vehicle sales growth has slowed, Tesla has been shifting attention to other projects, including robotaxis and humanoid robots, as it seeks to diversify its business.
Source: Reuters
