Tesla (TSLA) is seeing its US market share of the electrical car market drop to new lows in August, in keeping with knowledge from Cox Automotive, a analysis agency.
It’s occurring amid a surge in EV gross sales within the US, following the expiration of the federal tax credit score.
Tesla’s world gross sales have been in decline since a peak in 2023.
After declining barely by 1% in 2024, Tesla’s gross sales are down roughly 10% globally in 2025.
The American automaker’s gross sales in Europe are down by as a lot as 40% and in China, the world’s largest EV market, Tesla is down about 6%.
Solely in its residence market, the US, Tesla seems to have the ability to preserve its gross sales degree, however that’s not anticipated to final.
EV gross sales are anticipated to achieve a report excessive in Q3 2025 within the US, pushed by the tip of the $7,500 tax credit score for electrical autos, which can expire on September thirtieth. It’s driving demand ahead into Q3, and gross sales are subsequently anticipated to crash in This autumn.
Each electrical automaker is competing for the robust demand forward of the tip of the tax credit score, and new knowledge means that Tesla could also be shedding market share within the course of.
In line with new knowledge from Cox Automotive, Tesla’s market share within the US was all the way down to 38% in August (through Reuters):
Tesla, which as soon as held greater than 80% of the U.S. EV market, accounted for 38% of the entire EV gross sales in the US in August, the primary time it has fallen beneath the 40% mark since October 2017, when it was ramping up manufacturing of the Mannequin 3, its first mass market automotive, in keeping with early knowledge from Cox.
Whereas it has been some time since Tesla dominated the US EV market with an 80% market share, the Texas-based automaker has maintained a 50%+ market share for a formidable variety of years.
Tesla solely began to lose its maintain on the US market in 2025. The automaker’s market share within the US has been in a gentle decline all year long.
By June, Tesla’s market share dipped beneath 50% to 48.7%, in keeping with Cox’s knowledge. Since then, it has been in a free fall, dropping to 42% in July and now to 38% in August.
Electrek’s Take
I all the time anticipated Tesla’s market share to drop over time as extra EVs grew to become obtainable from legacy automakers and new entrants.
However I didn’t count on, or a minimum of till the final 2 years, that Tesla’s world deliveries would decline throughout that point.
I believed that Tesla would proceed to develop with the remainder of the EV market, simply with a smaller share of the market because the pie will get larger.
Nonetheless, that’s not what’s occurring. Tesla’s deliveries are declining whereas the worldwide EV market continues to surge.
In the meantime, even within the US, Tesla’s market share is plummeting.
That’s what occurred when you have got a minimal and growing old car lineup going through more and more intense competitors, and your CEO is among the most disliked males on the earth.
Now, I do know that the CEO and Tesla shareholders will say that it doesn’t matter as a result of Tesla is by some means magically an AI and robotics firm, regardless of nearly all of its income coming from the sale of autos.
The humorous factor is that Tesla will find yourself having a robust Q3 due to the demand being pulled ahead within the US, and I guess they are going to have a good time this although it’s going to be purely due to the auto enterprise and possibly the final good quarter its auto enterprise could have for a very long time.
