Tesla’s U.S. market share has plummeted to 38%, its lowest level in eight years, causing the company’s stock to drop by more than 1%.
On Monday, Tesla’s stock closed at 346.40 USD on the New York Stock Exchange, down 1.27% for the day.
Reuters reported that day, citing data from Cox Automotive, that consumers are increasingly opting for electric vehicles (EVs) from Tesla’s competitors over the company’s aging product lineup. This shift has pushed Tesla’s U.S. market share to its lowest point in nearly eight years.
Data from Cox Automotive show that Tesla, which once commanded over 80% of the U.S. EV market, saw its share drop to 38% in August—marking the first time since October 2017 that its market share has fallen below 40%.
The company also experienced a significant decline in deliveries in China during August. According to figures released by the China Passenger Car Association, Tesla sold 57,152 vehicles in China that month, a 9.9% decrease from the previous year.
This global sales slump appears to be the primary factor behind Tesla’s stock price decline of over 1% on the day in question.