Why Tesla Sales Are Tanking

Part of Tesla’s problem is competition. Other carmakers are steadily rolling out new and compelling EV products, while Tesla has done little to improve its own lineup. The result is a decline in U.S. EV market share from roughly 80 percent in 2020, to 67 percent at the beginning of 2023, to 52 percent in May. And while controlling half the market seems like a strong position, Tesla has spent heavily on incentives to maintain that share, taking a serious toll on profits.