Tesla’s Market Share Reportedly Slides In August To Lowest Since 2017 – Here’s What Happened

EV giant Tesla Inc.’s (TSLA) market share in the U.S. reportedly dropped to a near eight-year low in August.

According to a Reuters report, citing data from research firm Cox Automotive, the company accounted for just 38% of total EV sales in the U.S. in August, down from highs of over 80% previously recorded.

August marks the first time since October 2017 that market share fell below 40%, the report said, while adding that back in 2017, the company was ramping up production of its Model 3 sedan. Tesla sales grew 3.1% while overall EV sales jumped 14%, according to Cox’s preliminary data.

On Stocktwits, retail sentiment around TSLA stayed within ‘bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels. According to Stocktwits data, retail chatter around the stock rose 139% over the past seven days.

A Stocktwits user opined that the stock chart still looks ‘bullish.’

Another user expressed skepticism about the company.

Tesla is currently attempting to shift its focus from being an EV maker to an AI and robotics company, with investments in robotaxis and humanoid robots. Last week, the company proposed a staggering $1 trillion pay package for CEO Elon Musk, contingent upon achieving milestones, including the deployment of one million robotaxis in commercial operation and the delivery of one million AI Bots, all while expanding the company’s market capitalization by trillions of dollars.

Tesla has yet to deliver another fresh vehicle since it began delivering the stainless steel, higher-end Cybertruck in November 2023. However, Cybertruck caters to a more premium consumer base and has failed to achieve delivery volumes comparable to those of either the Model Y or Model 3.

"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 Reuters.

In July, Tesla’s market share fell to 42% from 48.7% in June, Reuters said. Sales of new EVs jumped more than 24% month over month in July to 128,268, according to the Cox data. Tesla saw sales rise 7% to 53,816, despite its market share falling. Meanwhile, rivals such as Hyundai, Honda, Kia, and Toyota increased EV sales between 60% and 120% to boost market share, the report said.

TSLA stock is down 14% this year but up approximately 60% over the past 12 months. 

Read also: Stellantis Stock Slips After US Regulator Probes 287,000 Chrysler Minivans Over Concerns Regarding Electric Power Steer

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