U.S. electric vehicle sales hit a new record in August — but Tesla is moving in the opposite direction.
What's happening?
Americans bought 146,332 EVs last month, the highest monthly total yet, according to Kelley Blue Book data cited by Electrek.
EVs made up nearly 10% of all new cars sold. Recent discounts have helped to drive demand, with buyers saving an average of more than $9,000 on new EV purchases.
However, Tesla, the longtime market leader, saw sales drop 6.7% compared to this time last year. Its share of the U.S. EV market slid to just 38%, the lowest in company history. Prices for Tesla vehicles also ticked higher, averaging $54,468 in August.
Some customers and industry watchers are blaming company leadership for the slide.
According to the top comment on the Electrek article: "Elon's antics have seriously hurt Tesla in the last three years. … Considering their scale and other huge advantages, Tesla should still be killing competitors with their value proposition."
Why is Tesla's slide concerning?
Falling Tesla sales could have ripple effects for consumers. If fewer people buy Teslas, the company could respond with fewer updates, less innovation, or price increases to maintain profits.
That could make EV ownership less accessible at a time when the demand for clean-energy vehicles is higher than ever.
What's more, when a major EV brand loses ground, it could also slow the ongoing transition away from gas-powered vehicles, leaving more harmful transportation pollution in the air.
The company has faced similar challenges before. In both 2023 and 2024, Tesla's repeated price cuts raised concerns about profitability and consumer confidence.
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Would you still consider buying an EV if there weren't tax incentives for doing so?
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Definitely 👍 In 2025, reports showed Tesla deliveries dropping in China, with rivals like BYD and Ford gaining momentum. Lagging domestic sales numbers and Musk's increasing unpredictability have also contributed to customer unease.
What's being done about Tesla's struggles?
EV industry analysts say fresh models are key. Tesla's recent Model Y refresh has slowed its decline, but rivals are also releasing new EVs at a faster pace.
"The one constant in the automotive business is that fresh products sell well," said Stephanie Valdez Streaty of Cox Automotive, per Electrek.
For everyday drivers, the good news is that consumer choice has never been wider. New EVs from Hyundai, GM, Rivian, and more are hitting the market monthly, many with competitive prices and incentives.
If you're considering your first EV or looking beyond Tesla, doing your homework can help you find the models that fit your budget, lifestyle, and preferences.
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