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Tesla Loses EV Market Share as Rivals Gain Ground
9 Sep
Summary
- Tesla's EV sales drop below 40% for the first time in 8 years
- Newer, cheaper models from rivals like Chevy, Hyundai, and Kia gain popularity
- Tesla's focus shifts to AI, robotics, and autonomous vehicles
As of September 9th, 2025, Tesla's once-dominant position in the electric vehicle (EV) market is rapidly declining. According to the latest vehicle sales data, Tesla now accounts for only 38% of new EV sales in the United States, the first time in nearly eight years that the company has sold less than 40% of the country's new EVs.
This trend shows no signs of stopping, as shoppers have been drawn to the newer and more affordable models from Tesla's rivals, such as Chevy, Hyundai, and Kia. Additionally, older models with significant incentives from Volkswagen and Ford have also gained popularity.
The problem for Tesla is that the company has not launched a hit car with an affordable price in years. Its last major release, the angular Cybertruck, was expected to be a blockbuster, but in the two years since its $72,000 launch, the company has only sold around 52,000 units.
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Rather than focusing on developing new and more affordable EV models, Tesla has shifted its attention to AI, robotics, and autonomous vehicle technology. The company's recently released "Master Plan 4" roadmap does not mention any new vehicle models or updates to its current cars, instead putting these emerging technologies at the center of its future strategy.
