India, Sept. 8 -- Tesla Inc.'s market share in the US has dropped to an eight-year low as buyers opted for electric cars that weren't from the stable of Elon Musk.

The company run by the world's richest person accounted for 38% of the total EV sales in the US in August 2025, slipping below the 40% mark for the first time since October 2017, when it was ramping up production of the Model 3-its first mass-market electric car, according to Cox Automotive data shared with Reuters. Tesla's market share fell to 42% in July from 48.7% in June, in the sharpest drop since March 2021.

The decline in Tesla's car sales underscores the threat from electric carmakers ramping up sales before EV tax credits expire by the end of September.

To be sure, ...