- Just 38% of the electric cars Americans bought in August were Tesla products
- That’s the lowest figure since October 2017
Tesla once dominated the electric vehicle (EV) market in the United States. It held over 70% of the market in the first quarter of 2022.
However, the company has steadily lost ground as more competitors appear every month. In August, Tesla’s hold slipped to just 38% of all EV sales in the U.S., according to Kelley Blue Book parent company Cox Automotive. It’s the first time the figure has fallen under 40% since October 2017.
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Reuters notes, “The slowdown came as competitors such as Hyundai, Kia, Toyota, and Honda stepped up with incentives that boosted their EV sales by as much as 120% in July.”
The government’s $7,500 EV tax rebate disappears at the end of this month. That has buyers rushing to buy EVs now, while they can still claim the discount.
That has some automakers slowing their investments in EVs, delaying models, or even pulling some from the U.S. market.
But car companies are caught in a bind. Just as the U.S. government pulls some support from the EV market, EVs are making up a growing share of the world’s new car purchases. The International Energy Agency estimates that 25% of all new cars globally could be electric by the end of 2025. Automakers know they will lose global competitiveness if they don’t perfect EV technology.
Others, like Ford, are doubling down on new EV designs and the infrastructure to build them.
Meanwhile, Tesla sees itself as less of an automaker every day. The company recently released its fourth “master plan,” which emphasizes robotics and de-emphasizes cars. The company has few new car projects in its pipeline.
Stephanie Valdez Streaty, director of industry insights at Cox, told Reuters: “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.”
