- There’s more bad news for Tesla.
- Elon Musk’s carmaker saw its EV market share in the US fall below 40% for the first time in 8 years.
- In Q2, Tesla reported its biggest year-over-year revenue decline in the last 10 years.
There’s more bad news for Tesla.
Elon Musk’s carmaker accounted for 38% of total EV sales in the US last month, according to data from research company Cox Automotive shared with Reuters. This is the first time since October 2017 that it has dropped below 40%, the report notes.
Representatives for Cox Automotive and Tesla did not immediately respond to a request for comment from Business Insider.
According to Cox’s report, Tesla once held more than 80% of the US EV market, but it has faced some challenges recently.
In its latest earnings, Tesla missed expectations for vehicle deliveries and revenue, posting its biggest year-over-year revenue decline in the last decade.
In its earnings release, the company cited factors like “a sustained uncertain macroeconomic environment” stemming from “shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment.”
Musk said it’s possible Tesla could have “a few rough quarters” owing to the expiration of the EV federal tax credit at the end of September and the broader regulatory environment.
Tesla’s board last week proposed an unprecedented $1 trillion pay package for Musk.
Rivals are gaining ground at the same time as Tesla seems to be shifting more attention to AI and its humanoid robot, Optimus,
Tesla recently published its fourth “Master Plan,” shortly after Musk tweeted that roughly 80% of the company’s value will ultimately come from Optimus rather than its vehicle lineup.
“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, told Reuters.
