Tesla’s share of the U.S. electric vehicle market slipped to 38% in August, its lowest since 2017, according to Cox Automotive data. The drop marked the first time Tesla’s share fell below 40% since October 2017. While Tesla’s sales rose 3.1% in August, the overall U.S. EV market grew 14%, highlighting the company’s relative underperformance. Rival automakers including Hyundai, Kia, Toyota, and Honda boosted sales with incentives, achieving YoY gains of up to 120% in July. Industry analysts pointed to Tesla’s limited new product pipeline as a key factor. Tesla once commanded up to 80% of the U.S. EV market, but has seen its dominance eroded as competitors expanded offerings.