This Tesla share market drop is able to show the pressure from carmakers stepping up their EV push during a tough time for the industry. The electric vehicle manufacturers are now focused on expanding their offerings, especially in the U.S. market, so Tesla experiences a growing rivalry. According to different analysts, the EV sales will continue to climb until the end of September, then decline as soon as the federal tax credits expire, adding pressure on Tesla as well as on other EV competitors.
It should be mentioned that Elon Musk’s company was, in the past, one of the most popular electric vehicle companies and had more than 80% of the U.S. EV market share. Now, according to different reports, Tesla recorded in August about 38% of the total EV sales, which represents a significantly low number compared with the previous years. This is the first time that the EV manufacturer has fallen below 40% since 2017.
In 2017, Tesla announced the Model 3 EV, which was probably the most popular car back then, mostly thanks to its features and capabilities, which were truly impressive, especially implemented on an electric vehicle.
We can say that the entire EV industry is continuously evolving, and the car manufacturers are focused on releasing new technologies and car models almost every year, and even often than that. But at Tesla, things are slightly different because their focus has shifted towards building robotaxis and also humanoid robots. So, because Tesla is so focused on these two powerful projects, it does not have the time to create a more affordable EV in order to remain competitive in the market.
"I know they're positioning themselves as a robotics and AI company. But when you're a car company, when you don't have new products, your share will start to decline," the Cox's director of industry insights, stated for Reuters.
Even more so, BYD has surpassed Tesla, becoming the leading company in the EV market a couple of months ago. We don’t know what Tesla is preparing to recover from this market share loss, but stay tuned for more Tesla updates!
