Tesla’s share of the U.S. electric vehicle (EV) market dropped to its lowest level in nearly eight years in August. According to data from research firm Cox Automotive, Tesla accounted for just 38% of all EV sales in the U.S. last month, falling below 40% for the first time since October 2017.
The decline shows how competition is intensifying. Many automakers are launching new EV models and offering incentives, while Tesla has focused on ambitious projects like robotaxis and humanoid robots. Plans for more affordable Tesla models have been delayed or canceled, which could affect the company’s market position.
Analysts expect a temporary rise in U.S. EV sales through September due to federal tax credits, but this growth may slow once incentives expire at the end of the month. Tesla, which once controlled more than 80% of the EV market, now faces increasing pressure from rivals.
In July, Tesla’s U.S. market share fell from 48.7% in June to 42%, the sharpest drop since March 2021, when competitors like Ford launched EVs such as the Mustang Mach-E. Despite a 7% increase in sales to 53,816 vehicles, Tesla’s market share declined because overall EV sales grew more than 24% to 128,268 units.
In August, Tesla’s sales growth slowed to 3.1%, while the broader EV market grew by 14%, signaling that competition is catching up. Tesla’s last new vehicle, the Cybertruck, launched in 2023, has not achieved the same success as the Model 3 or Model Y. Although Tesla refreshed the Model Y, results were below expectations.
Tesla’s long-term valuation still relies heavily on Elon Musk’s vision for robotaxis and humanoid robots. The company recently proposed a $1 trillion pay package for Musk, tied to ambitious growth milestones, including a projected market value of $8.5 trillion over the next decade.
Source: Reuters, Cox Automotive
Tesla Proposes $1 Trillion Pay Plan for Elon Musk
Tesla’s board has proposed a $1 trillion compensation plan for CEO Elon Musk if he hits major targets. The plan focuses on AI, autonomous technology, and robotaxi growth. Musk previously received a $29 billion interim package to stay through 2030.
Under the 10-year plan, Musk’s payout is tied to ambitious goals: increase Tesla’s value from $1 trillion to $8.5 trillion, deliver 20 million vehicles, and expand the robotaxi business. If all targets are met, his stake could rise to 25%. The first portion of the pay unlocks when Tesla reaches a $2 trillion valuation.
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