Tesla market share in US drops to lowest since 2017 as Elon Musk pivots to robotaxis | Latest Tech News
Tesla’s US market share dropped to a close to eight-year low in August as consumers selected electric automobiles from a growing steady of rivals over the growing older lineup provided by CEO Elon Musk’s company, according to data from research firm Cox Automotive shared solely with GWN.
The decline highlights the risk from automakers ramping up EV incentives at a tough time for the industry. Analysts count on an EV gross sales bump to continue through September in the US, then drop when federal tax credit expire at the end of the month, raising financial strain on Tesla and other automakers.
Tesla, which once held more than 80% of the US EV market, accounted for 38% of the full EV gross sales in the United States in August, the first time it has fallen below the 40% mark since October 2017, when it was ramping up manufacturing of the Model 3, its first mass market car, according to early data from Cox.
Tesla, which once held more than 80% of the US EV market, accounted for 38% of the full EV gross sales in the United States in August, the first time it has fallen below the 40% mark since October 2017. REUTERS
While other automakers are rolling out new EVs, Tesla has turned its focus to building robotaxis and humanoid robots, delaying and canceling plans for cheaper electric vehicle fashions.
Much of Tesla’s trillion-dollar valuation hangs on that wager. The company’s board on Friday proposed an unprecedented $1 trillion pay package deal for Musk that, aside from other operational milestones, is pegged to Tesla’s worth rising to $8.5 trillion over the next decade.
For now, Tesla’s core auto business stays its money maker. Its last new model was the Cybertruck pickup that rolled out in 2023 with nothing of the success of its Model 3 midsize sedan or Model Y midsize SUV. Tesla has refreshed the Model Y, once the world’s best-selling car, but the adjustments failed to live up to expectations, and Tesla is on observe toward a second 12 months of gross sales decline.
While other automakers are rolling out new EVs, Tesla has turned its focus to building robotaxis and humanoid robots, delaying and canceling plans for cheaper electric vehicle fashions. REUTERS
“I know they’re positioning themselves as a robotics, AI company. But when you’re a car company, when you don’t have new products, your share will start to decline,” Stephanie Valdez Streaty, Cox’s director of industry insights, said in an interview with GWN.
Cox has more full data for July, when Tesla’s market share fell to 42% from 48.7% in June. The drop was the sharpest since March 2021, around the time when Ford launched its Mustang Mach-E EV, according to a GWN analysis of the data.
Musk’s right-wing political work and affiliation with President Trump also has harm the model. Musk helped information Trump’s efforts this 12 months to downsize and reshape the US authorities but left the administration in May and had a falling out with the Republican president.
Elon Musk’s right-wing political work and affiliation with President Trump also has harm the model. The two pictured at the White House in February. Getty Images
Sales of new EVs jumped more than 24% month over month in July to 128,268, according to the Cox data, pushed by the looming end of a $7,500 tax credit for EVs and enticing offers. Tesla noticed gross sales rise 7% to 53,816, even as its market share fell.
In August, Tesla’s growth slowed to 3.1%, and the broader market grew by 14%, the preliminary data confirmed.
Competition against Tesla has turned fierce at EV seller heaps.
While scouring for a car for on a regular basis use last month, Topojoy Biswas, a 41-year-old tech employee in the San Francisco Bay space, was greeted with a vary of offers, including zero down fee and zero rates of interest, from numerous EV sellers.
Competition against Tesla has turned fierce at EV seller heaps. The Volkswagen ID.4, above. AP
Instead of the Toyota Camry he initially was eyeing, Biswas purchased a Volkswagen ID.4, VW’s competitors to the Model Y, lured by an enticing lease price and an offer of free fast-charging. Volkswagen gross sales rose more than 450% in July from the earlier month.
“It felt like the deal of the market,” Biswas said.
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