Tesla loses U.S. EV lead: market share slips to 38%
Tesla's U.S. EV market share drops to 38% in August 2025, first time below 40% since 2017
Tesla loses U.S. EV lead: market share slips to 38%
Tesla's U.S. EV market share fell to 38% in August 2025, first sub-40% since 2017, as tax credit deadlines pulled demand and rivals challenged aging models.
2025-09-08T16:50:21+03:00
2025-09-08T16:50:21+03:00
2025-09-08T16:50:21+03:00
According to Cox Automotive, Tesla’s share of the U.S. electric-vehicle market fell to 38% in August 2025—the first time since 2017 it has slipped below 40%. At its peak, the brand commanded more than 80% of the segment, and until recently it still held above 50%.The dip arrived amid a flurry of EV buying in the U.S., spurred by the imminent end of the $7,500 federal tax credit. Demand was pulled forward into the third quarter, and experts expect a slowdown toward year-end. It reads like a classic pull-ahead: deadline pressure lifts sales now, then leaves a softer patch behind.Globally, Tesla’s momentum has also weakened. Sales in Europe are down 40%, in China off 6%, and nearly 10% lower worldwide for 2025. The U.S. remains the exception on volume, yet the company’s grip is loosening quickly: 48.7% share in June, 42% in July, and 38% in August. The trendline is hard to miss.Explanations center on an aging model range, intensifying competition from both established automakers and new entrants, and image challenges tied to Elon Musk. In a market that prizes fresh product and stable trust, those headwinds tend to compound.The EV space is growing up fast. When choices were few, Tesla was the obvious pick. Now, to stay among the top EVs, the company needs to refresh its lineup and reduce reliance on a single brand persona. The showroom message feels plain enough: breadth of product beats personality over the long haul.
Tesla, U.S. EV market share, 38%, August 2025, Cox Automotive, EV sales, federal tax credit, pull-ahead demand, competition, aging lineup, Elon Musk, Europe sales drop, China slowdown, market trend
2025
Michael Powers
news
Tesla's U.S. EV market share drops to 38% in August 2025, first time below 40% since 2017
Tesla's U.S. EV market share fell to 38% in August 2025, first sub-40% since 2017, as tax credit deadlines pulled demand and rivals challenged aging models.
Michael Powers, Editor
According to Cox Automotive, Tesla’s share of the U.S. electric-vehicle market fell to 38% in August 2025—the first time since 2017 it has slipped below 40%. At its peak, the brand commanded more than 80% of the segment, and until recently it still held above 50%.
The dip arrived amid a flurry of EV buying in the U.S., spurred by the imminent end of the $7,500 federal tax credit. Demand was pulled forward into the third quarter, and experts expect a slowdown toward year-end. It reads like a classic pull-ahead: deadline pressure lifts sales now, then leaves a softer patch behind.
Globally, Tesla’s momentum has also weakened. Sales in Europe are down 40%, in China off 6%, and nearly 10% lower worldwide for 2025. The U.S. remains the exception on volume, yet the company’s grip is loosening quickly: 48.7% share in June, 42% in July, and 38% in August. The trendline is hard to miss.
Explanations center on an aging model range, intensifying competition from both established automakers and new entrants, and image challenges tied to Elon Musk. In a market that prizes fresh product and stable trust, those headwinds tend to compound.
The EV space is growing up fast. When choices were few, Tesla was the obvious pick. Now, to stay among the top EVs, the company needs to refresh its lineup and reduce reliance on a single brand persona. The showroom message feels plain enough: breadth of product beats personality over the long haul.
