Tesla’s market share in the United States dropped below 40% last month for the first time in nearly eight years, according to new data from Cox Automotive released on Monday.
According to Cox Automotive, EV sales jumped 24% month over month in July, while Tesla‘s registrations rose 7% sequentially.
However, despite selling more vehicles from June to July, the market share of the company declined from 48.7% to 42% — meaning that customers likely opted for other electric vehicle brands.
In August, and as the federal EV tax credit September 30 deadline continued to spur a 14% nationwide rise in sales, Tesla‘s growth slowed to just 3.1%.
Tesla’s share of total vehicle registrations fell to 38%, marking the first time it dropped below 40% since October 2017, when it was ramping up production of the Model 3.
The data was reported by Reuters, which had exclusive access to the numbers.
According to Cox Automotive‘s Director of Industry Insights, Stephanie Valdez Streaty, the decline can be attributed to Tesla‘s recent focus on robotics and AI.
“I know they’re positioning themselves as a robotics, AI company. But when you’re a car company, when you don’t have new products, your share will start to decline,” Streaty explained, in an interview with Reuters.
Several Wall Street analysts see this shift to autonomous vehicles and robotics as the core of Tesla‘s business from now on.
“Tesla is heading into one of the most important stages of its growth cycle with the autonomous and robotics future now on the doorstep,” Wedbush analyst wrote last week, in a new note to clients — obtained by PriceTarget.
The company is preparing for the public launch of its driverless ride-hailing service later this month, with the app for the Robotaxi already available for download in the App Store.
In the end of August, Tesla has launched a longer-range version of the Model 3 and a three-rowed version of the Model Y in China, plus a Performance trim of the Model Y in Europe — but not in the US.
According to Elon Musk on X, the Model Y L is not going to be produced in the US until the end of 2026. The chief executive further added that it “might not ever, given the advent of self-driving in America.”
Sales estimates from Motor Intelligence showed last week that Tesla sold 55,500 vehicles in the United States last month, a new monthly record in 2025.
The figures mark a modest 4.4% rise from the same period last year and a 3.1% increase from July’s 53,816 units — in line with Cox Automotive‘s data.
According to Motor Intelligence, Rivian sold 4,825 vehicles last month, 15% above July’s figures, while Lucid Motors registered 993 vehicles in August, 70 of which were Gravity SUVs.
Monthly registrations from US automaker Tesla continue to decline all across Europe as we enter the ninth month of 2025.
US Transportation Secretary Sean Duffy announced on Thursday that the Trump Administration is streamlining the process for automakers to introduce self-driving cars in the country.
Tesla’s sales in the Dutch market fell 49.8% last month to 776 vehicles, marking the brand’s eighth straight month of year over year declines.
Tesla's Board of Directors has announced on Friday a fresh compensation plan for Chief Executive Elon Musk, linking the potential payout to unprecedented growth targets, including a market capitalization of nearly $7.5 trillion.
