FX.co ★ Tesla market share slides to 8-year low

Surprising developments are unfolding at Tesla, Elon Musk’s brainchild. According to a Reuters report citing Cox Automotive research, Tesla's share of the US market fell in August to its lowest level in nearly eight years. Analysts attribute this slump to an aging lineup that has driven buyers toward rivals offering newer electric models. For Musk, the company's founder and CEO, the situation is far from encouraging.

Tesla's struggles extend beyond the United States. The company has experienced an eight-month decline in sales in Europe due to increased competition from Chinese and European automakers. In July, rivals including Hyundai, Honda, Kia, and Toyota surpassed Tesla's growth, boosting EV sales by 60% to 120%.

Adding to Tesla's headwinds are Musk's far-right political activities and his recent partnership with US President Donald Trump.

Analysts warn that while EV sales in the US may rise in September, they are likely to drop once federal tax incentives expire, intensifying financial pressure on Tesla and other automakers.

The final month of summer was particularly harsh for Tesla. Its market share fell to 38% of total US EV sales, down sharply from more than 80% previously. In July, Tesla's share slipped to 42%, compared with 48.7% in June.

Meanwhile, the company's focus has shifted. While other manufacturers are rolling out new EV models, Tesla is concentrating on robotaxis and humanoid robots. Plans to launch cheaper electric cars have been put on hold. Nevertheless, analysts caution that Tesla's current performance deserves close attention, as its vehicle business remains the company’s primary source of revenue.