Tesla’s (NASDAQ:TSLA) U.S. market share dropped to a near eight-year low in August as buyers chose electric vehicles from a growing stable of rivals over the aging lineup offered by CEO Elon Musk’s company, according to data from research firm Cox Automotive shared exclusively with Reuters.
Tesla, which once held more than 80% of the U.S. EV market, accounted for 38% of the total EV sales in the United States in August, the first time it has fallen below the 40% mark since October 2017, when it was ramping up production of the Model 3, its first mass market car, according to early data from Cox.
Analysts expect an EV sales bump to continue through September in the United States, then drop when federal tax credits expire at the end of the month, raising financial pressure on Tesla (TSLA) and other automakers, the report said.
Tesla (NASDAQ:TSLA) gained on Friday as investors assessed the $1 trillion pay package for CEO Elon Musk that will be voted on at the shareholder meeting on November 6. It was up +1.4% in Monday’s premarket trading.
The company last month lowered the price for its Model 3 rear-wheel drive version in China by 3.7% to 259,500 yuan ($36,278.99), according to its website.
It has also lost its leadership position to BYD in the EV market, with declining revenues and market share in China and Europe, challenging its growth engine.
Back in July, William Blair analyst Jed Dorsheimer pointed to the elimination of the $7,500 tax credit for the purchase or lease of a new electric vehicle in the Republican tax and spending bill as a clear negative for Tesla (NASDAQ:TSLA).