Tesla's Dominance In US EV Market Is Getting Squeezed, Market Shares Drop To 38 Percent

Tesla Robotaxi. (Photo: Tesla)

JAKARTA Tesla's market share in the United States has fallen to its lowest point in nearly eight years. Based on exclusive data from research firm Cox Automotive, Tesla's market share fell to 38 percent in August, marking the first time it fell below 40 percent since October 2017.

Referring to a Reuters report, Tuesday, September 9, this decline occurred when many other automotive manufacturers increased incentives and launched new, more attractive electric vehicle (EV) models, while Tesla's product line was considered parent'. Previously, Tesla had dominated the US EV market with a market share of more than 80 percent.

According to Stephanie Valdez Sttreaty, director of Cox, this decline is a logical consequence.

"When a car company doesn't have a new product, their market share will begin to decline," he explained.

Currently, Tesla's main focus is turning to ambitious projects such as robotics and humanoid robots, which make plans for more affordable EV models delayed or even canceled. This is in contrast to other manufacturers that are aggressively launching new EVs.

Tesla's last new model, Cybertruck, launched in 2023, did not gain the same success as the Model 3 or Model Y. In fact, the update on the Model Y is considered not to meet expectations. Analysts expect Tesla to face a year of successive second sales decline.

Data Cox Automotive shows that Tesla's competitors managed to take over momentum. In July, EV sales in the US jumped more than 24 percent from the previous month, driven by attractive incentives from various manufacturers.

While Tesla's sales rose 7 percent, its market share actually fell as competitors grew much faster. Hyundai, Honda, Kia, and Toyota offered greater incentives and managed to increase their EV sales by between 60 and 120 percent.