The most recent data reveals that in August, Tesla's market share in the U.S. electric vehicle sector plummeted to a mere 38%, a level unseen in almost eight years. This marked the first time it dipped below the 40% threshold. The root cause of this shift lies in consumers' growing inclination towards new models introduced by competitors, as opposed to Tesla's somewhat outdated vehicle lineup.

Industry analysts forecast that U.S. electric vehicle sales will maintain an upward trajectory in September. However, there's a looming concern that sales could take a hit due to the expiration of federal tax credits at the end of the month. This development is expected to exert financial pressure on manufacturers.

Tesla, in response, has pivoted its strategic focus towards projects like Robotaxi and humanoid robots. As a result, it has either postponed or scrapped plans for developing more affordable vehicle models. The company's multi-trillion-dollar market valuation is heavily contingent on the success of this strategic shift.

At present, Tesla's core automotive business still stands as its primary profit generator. Nevertheless, the underwhelming performance of its new models raises the possibility of a second consecutive year of declining sales.

In July, Tesla witnessed its most significant market share decline since March 2021. Moving into August, the pace of its sales growth decelerated, while the overall market expanded at a faster rate.