Tesla at its lowest: an empire in peril?
This page is translated from the original post "Tesla au plus bas : un empire en péril ?" in French.
- 09/09/2025 18:14
Tesla, once unassailable in the American electric vehicle market, is experiencing an unprecedented slowdown.
In August 2025, Tesla’s market share in the USA dropped to 38%, according to Reuters, marking the first time it has fallen below 40% since October 2017. This decline illustrates how the supremacy of the Palo Alto manufacturer is now being called into question.
The downturn was felt as early as July. Tesla went from a 48.7% market share in June to 42% in just one month, its largest drop since early 2021. While the manufacturer sold over 53,000 vehicles that month, competition exploded, with some rivals recording an annual growth of 120%. In August, Tesla’s sales increased by only 3.1%, while the entire American EV market experienced a growth of 14%.
Tesla struggles to keep up
The situation can be explained by several factors. Above all, Tesla no longer stands alone at the top! Hyundai, Kia, Ford, and General Motors are launching a multitude of electric new models, accompanied by attractive financing offers and aggressive promotions. Meanwhile, the Model 3 and Model Y, the cornerstones of Tesla’s lineup, are aging despite recent facelifts, and their appeal is starting to wane. This decline is further exacerbated, it must be reiterated, by the media visibility of the political choices of its CEO, Elon Musk.
Tesla is betting on the future by investing in ambitious projects like robotaxis and the humanoid robot Optimus. But for now, while energy ensures comfortable revenues, the automotive sector remains the heart of its business, and the lack of a major public launch weakens its position. The Cybertruck, launched in 2023, has amounted to a definite flop, far from the sales performances of its historic models.
The recent update of the Model Y to a six-seater version, available only in China, shows that Tesla is still innovating, but at a pace that struggles to keep up with the rising power of its competitors.
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For the first time in nearly a decade, Tesla must contend with a more competitive and diversified market. The drop below 40% in the USA is not just a figure: it symbolizes an era where the supremacy of the electric pioneer is no longer guaranteed. Tesla’s future will now depend on its ability to renew its range and attract an audience that now has a wealth of choices.
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