According to statistics from research firm Cox Automotive, Tesla’s (TSLA) market share in the US electric vehicle industry is falling to all-time lows in August.
After the federal tax credit expired, there was a spike in EV sales in the United States.
Tesla’s sales are down about 10% globally in 2025 after dropping by just 1% in 2024.
Sales of the American carmaker have dropped by up to 40% in Europe, and by roughly 6% in China, the biggest EV market in the world.
Tesla seems to be able to sustain current sales level only in its home market, the US, but that is not anticipated to remain.
With the expiration of the $7,500 tax credit for electric vehicles on September 30th, EV sales in the US are predicted to hit a record high in Q3 2025. Sales are predicted to plummet in Q4 as a result of it pushing demand into Q3.
Before the tax credit expires, all electric car manufacturers are vying for the high demand, and recent data indicates that Tesla might be losing market share in the process.
In August, Tesla’s market share in the US dropped to 38%, per recent data from Cox Automotive (via Reuters):
According to early data from Cox, Tesla, which formerly controlled more than 80% of the U.S. EV market, only made up 38% of all EV sales in the country in August. This is the first time the company has dropped below 40% since October 2017, when it was increasing production of the Model 3, its first mass-market vehicle.
Although the Texas-based automaker has had a 50%+ market share for an incredible number of years, it has been some time since Tesla led the US EV market with an 80% market share.
It wasn’t until 2025 that Tesla began to lose market share in the US. Over the course of the year, the automaker’s market share in the US has steadily decreased.
IndexElectrek’s Take
As additional EVs from established automakers and newcomers became available, I always anticipated that Tesla’s market share would decline.
However, I didn’t anticipate that Tesla’s worldwide deliveries would decrease throughout that time, at least not until the past two years.
As the pie grows, I anticipated that Tesla would continue to grow alongside the rest of the EV market, although with a reduced share.
But that is not the situation. As the worldwide EV market continues to grow, Tesla’s deliveries are decreasing.