Overview

• Cox Automotive data reported by Reuters shows Tesla fell below 40% share in August for the first time since October 2017, landing at 38%.
• The U.S. EV market grew about 14% in August while Tesla’s sales rose roughly 3.1%, widening the gap between the company and faster-growing rivals.
• Automakers including Hyundai, Honda, Kia, Toyota and Volkswagen posted sharp month-on-month gains aided by aggressive deals, with VW up more than 450% in July.
• Analysts expect a near-term sales pull-forward through September as a $7,500 federal EV incentive is set to expire, which could heighten pricing pressure afterward.
• Industry observers cite Tesla’s pivot toward AI, robotaxis and humanoid robots and delayed lower-cost models for its slower product cadence, while recent price cuts and Elon Musk’s political profile are seen pressuring margins and brand appeal.