Tesla's EV market share falls below 40% for the first time in the US

[Rudyduu]

Tesla isn't focusing on a cheaper automobile for the masses anymore lol. It will be cheaper and it will be self-driving, but the primary reason is for transportation as a service. They plan to completely eclipse ride-sharing companies by selling rides at a fraction of the price.

Full-self-driving and driverless cars replacing ride sharing services most places likely won't be happening any time soon maybe not even in the next 10-20 years and it likely won't be profitable for much longer than that.

I just wish ALL the manufactures of automobiles would go back to designing and making vehicles that ALL DON'T LOOK ALIKE!
Heck, have the time you see all these silly SUV's on the road, one looks like the other.
Now, everything is about "euro style"...screw that! I'd rather cars go back to looking like cars.

If you think they all look alike that's a perception issue not a design issue. If you think a Rivian looks like a Bronco and you think a Bronco looks like a Navigator that's on you.

 

[OortCloud]

The less money that reptile earns, the better.

 

[PXAbstraction]

That's a lie lmfao, there is literally no source that will say that. Carbon credits counted as 16% of their gross profits last year and it's been lower than that for at least half a decade. Even on a quarterly basis it's not true. In fact, in Q2 Tesla increased their profits while decreasing income from carbon credits.

OK, I stand corrected that their profits don't come solely from carbon credits. I was misinformed. However, your stats are also wrong:

Over 40% Of Tesla's Profit Comes From Selling Regulatory Credits

If a new administration delivers more lax environmental rules for automakers, one of Tesla's key profit-drivers could go away.

insideevs.com

Tesla's Carbon Credit Revenue Soars to $2.76 Billion Amid Profit Drop

Tesla’s profits fell 23% in 2024, but carbon credit sales up 54% to $2.76B. As emissions rules tighten, credits remain a key revenue driver.

carboncredits.com

 

[Plutoisaplanet]

OK, I stand corrected that their profits don't come solely from carbon credits. I was misinformed. However, your stats are also wrong:

Over 40% Of Tesla's Profit Comes From Selling Regulatory Credits

If a new administration delivers more lax environmental rules for automakers, one of Tesla's key profit-drivers could go away.

insideevs.com

Tesla's Carbon Credit Revenue Soars to $2.76 Billion Amid Profit Drop

Tesla’s profits fell 23% in 2024, but carbon credit sales up 54% to $2.76B. As emissions rules tighten, credits remain a key revenue driver.

carboncredits.com

My numbers are not wrong lol, the articles cited used different numbers from Tesla's income statement. I compared regulatory credit to gross profit, and they compared it to net income. Since you weren't aware of that, let me explain what these numbers actually mean to you lol.

Gross profits are the profits that Tesla can't easily change outside of market factors because they're directly related to Tesla's production of goods. Meanwhile, net income is also made up of R&D, SG&A, restructuring, and more that can vary a lot, easily be changed, or include one time expenses. It also includes interest income, which has nothing to do with their core business.

In my opinion, comparing carbon credits to gross profit is more realistic because carbon credits are part of the total revenue and these regulatory credits can depend directly on how many cars they sell (and also the competition). Net income might tell you what Tesla's paycheck is but it won't even tell you what they bring into the bank because of financing activities. It's also something that all companies will play with to keep positive... Companies occasionally make layoffs, close locations, or cut unnecessary costs for instance.

Furthermore, net income is fundamentally smaller and so comparing anything to it makes the number look big, which is why these articles chose it. If you compared Cybertruck revenue to net income, you could make it sound like Cybertrucks are one of the main reasons Tesla is profitable but it's just not true.

Then I referenced 2025 numbers: https://ir.tesla.com/
Q1 regulatory credits = $595M
Q1 gross profit = $3.15B
Q2 regulatory credits = $439M
Q2 gross profit = $3.88B
Last year, Tesla's regulatory credits were $442 and $890M in Q1/Q2 for comparison.

 

[axiomatic13]

Tesla's problems are squarely with Elon. Acting like a douche canoe on the worlds stage has consequences.

 

[wiyosaya]

This is what the article said:

This is going to be unsustainable for these automakers, and it supports everything I said that this is a one time thing (only until the end of September) to clear out inventory. Yes Tesla is losing ground this quarter, but these competitors don't want to take the lead unless they can benefit from subsidies because no one will want to buy their vehicles at a higher price after the incentives go away.

And the lack of incentives in the US will also apply to Tesla even though fElon begged the Orange Felon not to cut the incentives.

Tesla's days are numbered, IMO. The other manufacturers have something to fall back on if need be. Tesla is a one-trick pony with no comparable backup act.

 

[Plutoisaplanet]

And the lack of incentives in the US will also apply to Tesla even though fElon begged the Orange Felon not to cut the incentives.

Tesla's days are numbered, IMO. The other manufacturers have something to fall back on if need be. Tesla is a one-trick pony with no comparable backup act.

Except the Model Y is the best selling car in the world, not the best selling car in the US. Tesla has also sold its vehicles in the US without any consumer rebates from 2020-2022 while its competitors got the same rebate. Its prices are a lot lower than back then while having much better cars. And if tariffs do stick around, these will benefit Tesla too as they make the most American cars: https://www.carscoops.com/2025/04/teslas-are-the-most-american-made-cars-in-the-market/

Anyways, Tesla DID support ending the EV rebate ahead of the 2024 presidential election. They just wanted other subsidies to be cut too, which tracks considering Elon Musk spearheaded DOGE:

https://twitter.com/x/status/1857140615987048642

 

[wiyosaya]

Except the Model Y is the best selling car in the world, not the best selling car in the US. Tesla has also sold its vehicles in the US without any consumer rebates from 2020-2022 while its competitors got the same rebate. Its prices are a lot lower than back then while having much better cars. And if tariffs do stick around, these will benefit Tesla too as they make the most American cars: https://www.carscoops.com/2025/04/teslas-are-the-most-american-made-cars-in-the-market/

Anyways, Tesla DID support ending the EV rebate ahead of the 2024 presidential election. They just wanted other subsidies to be cut too, which tracks considering Elon Musk spearheaded DOGE:

https://twitter.com/x/status/1857140615987048642

fElon flip flopped.

https://www.cnn.com/2025/06/05/business/musk-trump-tesla-ev-tax-credit

 

[Plutoisaplanet]

fElon flip flopped.

https://www.cnn.com/2025/06/05/business/musk-trump-tesla-ev-tax-credit

You must've not read my post lol. His position hasn't changed. Please improve your reading comprehension. You can read his historical position on it here: https://x.com/search?q=(from:elonmusk) subsidies&src=typed_query&f=live

He's been consistent on removing all subsidies, and not just for EVs. It doesn't cite any change in position on the tax rebate from Elon Musk. While it has statements from analysts that Tesla would perform better with the tax rebate, it doesn't have any evidence that Tesla "needs" the tax rebate like it suggests. It does also quote two analysts who said Tesla's automotive business would do better than other EV makers without the tax rebate. It claims that they've changed their position, but once again it doesn't have sufficient evidence to support that.

What they mean is that while Tesla's sales numbers may decrease in the US (mostly in the short term). This is why I've said that other automakers are attempting to clear out inventory. Based on this TechSpot article, decreasing sales numbers while increase market share would be a good thing because apparently when its market share decreased while it increased sales in the US, that's bad news.

 

[ChrisH1]

Musk's biggest mis-step was giving people a reason to look at alternatives.

If he had shut up, kept his head down, and kept plugging away at his various projects Tesla's competitors would have undoubtedly nibbled away a little bit of marketshare, but not the mouthfuls they are taking at the moment.

Success is always a combination of ability and opportunity, and Musk gave his competitors a cybertruck sized hole to exploit.

People forget that Elon's stated objective was to make EV's mainstream. That's why he made the Tesla patents freely available. He's a peculiar man, admirable in some ways and driven, though I for one certainly wouldn't want to work for him nor marry him, and appears somewhat on the spectrum. People like that have objectives that probably differ from ours and I would not be surprised to find that idea is still firmly in his sights. He likes money as much as any, perhaps more, but it's perhaps telling that his holding in Tesla is now down below 12%. I think he's achieved what he wanted there, and is now focussing on his other stated objective, to get humans off just the one planet.

 

[wiyosaya]

You must've not read my post lol. His position hasn't changed. Please improve your reading comprehension. You can read his historical position on it here: https://x.com/search?q=(from:elonmusk) subsidies&src=typed_query&f=live

You're calling fElon's position flipping and flopping all over the place "hasn't changed?"

Good luck with that.

IMO, he's still headed for a fall, and Tesla's board is insane to offer him a Trillion Dollar incentive.

The competition will catch up and surpass him.

 

[wiyosaya]

People forget that Elon's stated objective was to make EV's mainstream. That's why he made the Tesla patents freely available. He's a peculiar man, admirable in some ways and driven, though I for one certainly wouldn't want to work for him nor marry him, and appears somewhat on the spectrum. People like that have objectives that probably differ from ours and I would not be surprised to find that idea is still firmly in his sights. He likes money as much as any, perhaps more, but it's perhaps telling that his holding in Tesla is now down below 12%. I think he's achieved what he wanted there, and is now focussing on his other stated objective, to get humans off just the one planet.

It's difficult to say what anyone's motivations are.

Optics show that his motivations probably have a financial bent to them.

Even though most people seem to think that it does, money doesn't make anyone a genius. I think that results from a tendency in modern society to think that money will solve all problems. Truth is, even though some people are unable to face it, problems come from within.

 

[netman]

"Rivian, BYD, and others are eating into Tesla's market"

Good... Finally...!