🚗 Tesla’s U.S. EV Market Share Falls Below 40% for First Time Since 2017

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According to Reuters citing Cox Automotive, Tesla’s share of the U.S. electric vehicle market slipped below 40% in August 2025 — its lowest level since 2017.

The Numbers

Tesla sales in July 2025: 53,800 units (+7% MoM)

U.S. EV market in July: 128,200 units (+24% MoM)

Tesla sales in August: –3.1% decline

U.S. EV market in August: +14% growth

So, while Tesla is still growing, the overall EV market is expanding much faster, diluting its dominance.

Why the Drop?

Analysts point to intensifying competition:

Rivals are aggressively rolling out new EV models.

Discounts and incentives are drawing buyers away from Tesla.

Meanwhile, Tesla has shifted its focus toward robotaxis and humanoid robots, delaying plans for new models and cheaper EVs.

Profit Pressure Ahead

Tesla’s auto business remains its primary revenue driver, but:

Price cuts are necessary to maintain sales volume.

Analysts warn this could squeeze margins and reduce profitability.

Tesla still leads the EV market, but its dominance is fading. The question now: can innovation in AI-driven mobility and robotics offset the pressure from cheaper, faster-released EVs by competitors?