Tesla's US market share fell to its lowest in 8 years! Traditional car companies are eroding their electric power industry

According to foreign media, Tesla's dominance in the US market is shaking historic. Data provided by research firm Cox Automobile to Reuters showed that in August this year, Tesla's market share fell to its lowest point in nearly eight years.

This undoubtedly sounded the alarm for car companies that are in the cold winter of the industry: when competitors increase their discounts on electric vehicle models, Tesla turned its focus to the development of robot taxis and humanoid robots, and postponed or even canceled the plan for affordable electric vehicles. The fate of this trillion-dollar company is due to this gamble. The company's board of directors recently proposed to formulate an unprecedented $1 trillion salary plan for Musk, with the goal of pushing Tesla's market value to $8.5 trillion in the next decade.

Although Tesla's core automotive business is still profitable, since the release of the Cybertruck pickup in 2023, it has not launched a new model that can replicate the gloriousness of the Model 3 or Model Y. Even with the facelift of the global sales champion Model Y, the market response is far less than expected, and Tesla is facing a decline in sales for the second consecutive year.

"I know they are positioning themselves as robotics and AI companies, but as car companies, without new products means losing market share," Stephanie Valdez Stretti, director of insights at Cox Automotive Industry, pointed out incisively.

Data shows that Tesla's market share in July has plummeted from 48.7% in June to 42%, marking the biggest drop since the Ford Mustang Mach-E was launched in March 2021. At the same time, Musk's connection with Trump and his right-wing political stance are also continuing to hurt the brand image.

Although U.S. electric vehicle sales surged 24% month-on-month to 128,268 units in July, and Tesla's sales also increased 7% to 53,816 units that month, its growth rate lags far behind the market. Preliminary data in August showed that Tesla's growth rate further slowed to 3.1%, while the overall market growth reached 14%.

What is even more worrying is that traditional car companies such as Hyundai, Honda, Kia and Toyota have achieved 60% to 120% of electric vehicle sales growth by providing more attractive car purchase solutions. These manufacturers not only launched stronger incentive policies than Tesla, but also successfully seized the market with their "sense of urgency marketing strategies".

Top Joy Biswas, a technology practitioner who works in the San Francisco Bay Area, personally experienced this change: he originally planned to buy a Toyota Camry, but was eventually conquered by the zero down payment, interest-free loans and free fast charging services of Volkswagen ID.4. The fact that Volkswagen's sales surged by 450% month-on-month in July is the best footnote to the counterattack of traditional car companies.