Tesla’s US market share plunges to 8-year low amid fierce EV competition

Elon Musk’s Tesla company has suffered a setback as its market share in the US EV market declined to the lowest since 2017.

As reported by Reuters, Tesla, once accounted for more than 80 percent share in the US market, now holds 38 percent of EV sales in the month of August.

According to data from research firm Cox Automotive, the declined sales mark the first time since October 2017 when it has slumped below 40 percent.

The recently declined Tesla market share comes in the midst of surging competition from EV makers as Americans turn to stable rivals to buy the vehicles.

In recent months, Tesla has also focused its shift away from developing cost-effective electrical vehicles, instead the CEO Elon Musk has put emphasis on humanoid robots and autonomous taxis.

Tesla has revived the once best-selling car Model Y, but unfortunately, the vehicle fails to live up to customers’ expectations thereby leading to plunging sales.

On Friday, the company offered an impressive $1 trillion pay package for Musk, aiming to enhance Tesla’s valuation to $8.5 trillion over the next decade.

Stephanie Valdez Streaty, Cox’s director of industry insights, said “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.”

According to analysts’ analysis, the decreased sales of EV have occurred due to expiration of federal tax credits at the end of month, putting more pressure on Tesla and other auto companies.