Tesla’s once-dominant grip on the EV market is slipping fast. That trend shows no signs of stopping.

Based on August’s data on vehicle sales, just 38% of new EV buyers chose Tesla. This marks the first time in nearly eight years that Tesla accounted for less than 40% of new electric vehicles sold in America.

Consumers are increasingly opting for more affordable models from competitors like Chevy, Hyundai, and Kia, or are swayed by substantial incentives on older models from Volkswagen and Ford.

The problem is straightforward: Tesla has not launched a hit car with an affordable price in years. 

Tesla’s latest major release, the distinctive Cybertruck, was anticipated to be highly successful. CEO Elon Musk reported ‘over 1 million reservations’ for the vehicle a month before its launch.

But, in two years since the $72,000 truck’s release, the company has only sold around 52,000 copies. 

Still, Tesla is not sweating the loss of its sales power. 

On September 1, Tesla unveiled ‘Master Plan 4,’ outlining the company’s future strategy, but it did not include any new vehicle models or updates to their existing lineup.

Tesla is betting that its high-tech vision for the future will cushion a drop in auto sales

The company just remodeled the Model 3 and Model Y, its best-selling vehicles

The plan is heavily focused on AI and robotics, featuring promises of humanoid robots that can clean homes and autonomous vehicles designed without steering wheels or rearview mirrors.

‘We must make one thing clear: this challenge will be extremely difficult to overcome,’ the company wrote. 

This strategic direction is closely linked to Musk’s proposed compensation package of $1 trillion. The package is dependent on the assumption that these advanced technologies will boost Tesla’s valuation to $8.5 trillion within the next ten years.

So far, Wall Street agrees, with Tesla’s stock rising 6 percent over the past five days.  

Morningstar analyst Seth Goldstein told the Daily Mail he thinks the strategy holds water long-term. 

‘I think Tesla’s long-term strategy makes sense, to shift the company from an automaker to focusing on autonomous driving software and robotics,’ he said.  

‘Tesla can still differentiate itself through its autonomous driving software.’ 

For now, though, Tesla is bleeding ground in the very market it created. Industry analysts are worried about the company’s sales slump.  

Celebrities, including Kim Kardashian, rushed to purchase the attention-getting Cybertruck – but sales have fizzled since the release date 

Elon Musk’s bet on a robot and autonomous future has a $1 trillion price tag – the company voted on a compensation package that approved the tech company’s move away from EV dominance

The company has been building self-driving capabilities with some driverless rides rolling out in Texas earlier this year

While Tesla’s sales have flatlined, other companies are hitting monthly records before the end of the federal EV tax credit on September 30. 

Ford announced chart-topping sales of its Mustang Mach-E crossover. Same with Chevy’s Equinox EV. Volkswagen said its ID.4 helped the company’s EV sales jump 450 percent in a single month. 

And next year, Tesla will encounter even more competition from legacy automakers. 

Nissan’s remodeled Leaf SUV will have a starting price of $30,000 and a range of 300 miles. Toyota’s new CH-R is $35,000 with enough juice for 290 miles. 

And Slate, a new vehicle startup backed by Jeff Bezos, is promising ultra-customizable small trucks with a starting price of $20,000. 

Stephanie Valdez Streaty, Cox Automotive’s director of industry insights, told Reuters she thinks the new products could be a problem for Tesla’s aging lineup: ‘When you’re a car company, when you don’t have new products, your share will start to decline,’ she said. 

But Goldstein disagrees. He points to the company’s recently refreshed styling on the Model Y, the world’s best-selling car in 2023, and the upcoming launch of a cheaper product as reasons for car sales optimism at Tesla. 

‘For the second half of 2025, I expect Tesla will do better than the first half of the year, when sales fell 13 percent,’ he said. 

‘Tesla’s new, more affordable version of its Model Y should launch in the fourth quarter, supporting a less steep decline than EVs as a whole due to the tax credit expiration.’

Tesla did not respond to the Daily Mail’s request for comment.