Tesla Inc's (NASDAQ:TSLA) share of the US electric vehicle market shrank to an eight-year low last month, amidst rising comeptition.
The company led by Elon Musk sold 38% of EVs purchases during August, according to a Reuters report using sdata from Cox Automotive.
This was the lowest EV market share since the 40% in October 2017.
Tesla's sales growth of 3.1% in August compared to the overall EV market at around 14%.
A growing variety of models has become available, the data showed, while Tesla’s last major release was the Cybertruck in 2023, though it refreshed its Model Y this year.
Tesla is positioning itself "as a robotics, AI company", Stephanie Valdez Streaty, director of industry insights at Cox, told the newswire. "But when you’re a car company, when you don’t have new products, your share will start to decline.”
If sales trends continue as they are, the company will record a second straight year of declining sales.
At the end of September, US federal tax credits come to an end, under President Trump's tax and spending bill.
Tesla shares hit an all-time high of almost $490 last December but have since reversed to just over $350. The shares were up 1.1% to $354.96 in premarket trading on Monday.
On Friday, the company's board proposed a record $1 trillion compensation plan for Musk if he meets performance targets over the next decade, including reaching a market capitalisation of $8.5 trillion, roughly eight times its current valuation.