While Tesla once dominated America’s electric vehicle market with over 80% share, the company’s grip has loosened dramatically to just 38% as of August 2025. This marks Tesla’s lowest market share since October 2017, even as the company delivered 323,800 vehicles in the first quarter of 2025.
Tesla’s production numbers tell a troubling story. The company made 362,615 vehicles in Q1 2025, down 16% from the same period last year. For all of 2024, Tesla produced 1,773,443 vehicles, a 4% decline from 2023. Revenue barely moved, growing just 1% to $97.7 billion in 2024.
Tesla’s production fell 16% in Q1 2025 while 2024 revenue barely budged, growing just 1%.
Meanwhile, traditional carmakers aren’t backing away from electric vehicles. They’re pushing harder. General Motors doubled its EV sales since Q2 2024. Companies like Hyundai, Toyota, Volkswagen, and Kia are gaining ground with newer models and aggressive incentives. Volkswagen’s average transaction price dropped 17.1%, while Volvo’s fell even more, showing how hard these companies are fighting for customers.
The broader EV market faces its own challenges. Electric vehicles made up 7.4% of US car sales in Q2 2025, down from 8% a year earlier. However, Q1 2025 data shows the U.S. EV market share at 7.5%, up from 7.0% in Q1 2024. Total EV sales dipped to 310,839 vehicles. The federal EV tax credit expires September 30, 2025, which could create a sales rush before then.
Tesla’s shifting its focus away from affordable cars toward robotaxis and humanoid robots. The company’s Model Y remains the world’s best-selling EV with 157,000 sales in the first half of 2025. The Model 3 added 67,000 sales. Together, these models keep Tesla afloat, but the company hasn’t launched new affordable vehicles as promised. The Model 3 and Model Y represent 95% of deliveries, accounting for 1.7 million units of Tesla’s total sales.
Globally, China’s BYD has overtaken Tesla as the largest EV manufacturer. China also controls two-thirds of the world’s charging stations, highlighting America’s infrastructure gap. Tesla maintains over 60,000 Superchargers but plans to build its Mexican Gigafactory in Monterrey in 2026.
Tesla isn’t winning the electric car race alone anymore. Traditional automakers aren’t retreating—they’re advancing with fresh models and deep discounts. As Tesla’s market share shrinks, the electric vehicle race has become a crowded field where no single company dominates.