Tesla in free fall in the United States. The brand specialized in electric cars has seen that its participation in the US market falls to its lowest level for almost eight years. Buyers of electric vehicles (VE) are increasingly resorting to the expansion of competitors, in front of the aging range of Elon Musk’s company, according to data from the automotive design firm COX communicated exclusively in Reuters.
From a quasi-monopoly to strong competition
In August, Tesla represented 38% of total sales of electric vehicles in the United States, while the company previously had more than 80% of the US US market. UU. This is the first time that the company has been under the 40% brand since 2017, when it had intensified the production of model 3, its first consumption car, according to the first Cox data.
According to Cox data, sales of new electric vehicles increased more than 24% in July compared to the previous month, thanks to the imminent end of the tax credit of $ 7,500 for electric vehicles and attractive offers.
If Tesla has seen its sales by 7%, its market share has decreased. According to Cox data, even in July, Tesla’s market share fell to 42%, compared to 48.7% in June. It is for the company of its strongest decrease since March 2021, when Ford launched its Mustang Mach-E electric vehicle, according to an analysis of the data made by Reuters.
In August, in the United States, Tesla’s growth decreased to 3.1%, while the market as a whole increased by 14%, according to preliminary data.
The second quarter of 2025 (April to June) already showed a decrease in this market share, at 48.5% according to the data transmitted by the Clean Technica site. However, Tesla retained one step ahead of its competitors, with 9.2%Chevrolet, 5.5%or Hyundai at 5.3%.
Delayed projects in Tesla
While other automobile manufacturers are launching new electric vehicles, Tesla has resorted to the design of robotaxis and humanoid robots, delaying and canceling their cheaper electric vehicles models.
A large part of the company’s valuation is based on this bet. On Friday, the Tesla Board of Directors proposed a new compensation agreement for the general director Elon Musk, estimated at around $ 1,000 billion (853.10 million euros), linked to ambitious performance objectives focused on the growth of products based on artificial intelligence and at the value of 8,500 billion in the next decade.
But the automotive activity remains at the moment in the main source of income of Tesla, while the company addresses for the second time to a drop in annual sales.
“I know they are positioning themselves as a company specialized in robotics and artificial intelligence. But when you are a car manufacturer and have no new products, your market share begins to decrease,” said Stephanie Valdez Straty, director of Sector Studies in COX, in an interview with Reuters.
For years, as market leader, Tesla could quickly increase her sales and impose high prices on her vehicles, allowing her to make profits. But with the slowdown in sales and the arrival of many competitors, Tesla has had to reduce their prices in recent years, thus reducing their margins and worrying investors.
An electric market that could collapse after September
Elon Musk’s very right political activities and his participation in the Donald Trump administration until the last May also damaged the brand.
July data has shown that Elon Musk’s company is preceded by its competitors. Hyundai, Honda, Kia and Toyota have implemented higher incentives than Tesla and higher sales of electric vehicles from 60% to 120%, which increases their market share.
“All these traditional manufacturers benefit from this emergency feeling and can offer attractive offers for their vehicles, and works,” said Stephanie Valdez Stream, believing that “this dynamic will continue until September.”
Analysts expect the increase in sales of electric vehicles to continue in September in the United States, and then inflate when federal tax credits will expire at the end of the month. What increases financial pressure on Tesla and other car manufacturers.
Source: BFM TV
