The market share of Tesla dropped to its lowest level in nearly eight years in August as buyers continue to choose electric vehicles from a group of competitors.
The data was released by the research company Cox Automotive to the agency Reuters. This decline highlights the threat from automakers increasing incentives for electric vehicles during a challenging time for the industry.
But while rivals advance, Elon Musk’s company continues to offer a lineup of aging vehicles. Tesla, which once held more than 80% of the U.S. electric vehicle market, accounted for 38% of total electric vehicle sales in the United States in August.
This was the first time the number fell below the 40% mark since October 2017, when production of the Model 3, its first mass-market car, was ramping up, according to preliminary data from Cox.
After delaying and canceling plans for cheaper electric vehicle models, Tesla appears to have shifted its focus toward building robotaxis and humanoid robots, and much of Tesla’s trillion-dollar valuation seems to depend on that bet.
On Friday (5th), the company’s board proposed an unprecedented $1 trillion compensation package for Musk which, in addition to other operational milestones, is tied to Tesla’s market value increasing to $8.5 trillion over the next decade. But until then, Tesla’s automotive business remains its main source of income.
“I know they’re positioning themselves as a robotics and AI company. But when you are an automaker, with no new products, your market share begins to fall,” said Stephanie Valdez Streaty, head of industry insights at Cox, in an interview with Reuters.
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