Tesla is losing market share in the U.S. while China deliveries fell 10% in August, but CEO Elon Musk appears focused on the Optimus humanoid robot for value creation as the EV giant may not be a giant much longer. TSLA stock traded around an early entry during the stock market Monday.
Cox Automotive data for August shared exclusively to Reuters early Monday showed that Tesla's U.S. market share dropped to a near eight-year low as buyers chose electric vehicles from rivals over Tesla's aging lineup.
Tesla, which once held more than 80% of the U.S. EV market, accounted for 38% of the total U.S. EV sales in August, the first time it has fallen below the 40% mark since October 2017, according to early data from Cox Automotive. That's back when Tesla was ramping up output of the Model 3, its first mass-market car.
This comes as analysts broadly expect EV sales to increase through September before the end of the Biden-era $7,500 EV tax credit. Electric vehicle sales are then forecast to plummet in Q4 and into 2026.
Meanwhile, Tesla saw 57,152 retail vehicle sales in China for August, down 9.9% from 63,456 last year but up 40.71% from July, according to data released Monday by the China Passenger Car Association (CPCA).
This is Tesla's sixth year-on-year monthly decline in China during the first eight months of 2025. From January to August, Tesla sold 361,179 vehicles in China, a 7% decrease vs. the same time frame in 2024.
Tesla China sales will get a boost in September from deliveries of the new Model Y L, a longer-wheelbase variant.
Tesla: The Future Of Value
However, while EV sales are under pressure in the two key markets, Musk is looking to future products and features to drive value. Last week, Musk posted to X that the Tesla Optimus humanoid robot could make up 80% of Tesla's value.
"It will take incredible effort, but I think it is possible," Musk wrote on Sept. 2 on whether Optimus could be the most successful product ever.
When it comes to the Tesla "robotaxi" rollout, Musk said on Sept. 4 that there should be "no safety driver by end of year." However, it's unclear how Tesla could legally remove the safety driver in California by year-end.
The Tesla Robotaxi app opened to the general public last week with some people apparently able to use the ride-hailing service.
The "robotaxi" service in in Austin, Texas, and the San Francisco Bay Are had been limited to Tesla influencers and other invitees.
Morgan Stanley removed its "top pick" designation for Tesla on Friday, but analysts maintain a 410 price target.
Musk Gets His Pay Package
On Friday, the Tesla board proposed a new pay package for Musk worth nearly $1 trillion over the next decade if he and the EV giant hit a series of performance targets.
Under the proposal, Musk must meet a series of goals to receive the full compensation package. The milestones include 20 million Tesla vehicles delivered, 10 million active full self-driving subscriptions, 1 million Optimus robots delivered and 1 million robotaxis in commercial operation all while growing the company's market capitalization by trillions of dollars.
Tesla Board Floats $1 Trillion Elon Musk Pay Package
Musk will receive no salary or bonus under the plan, but will collect shares in installments unlocked by increases in Tesla's market value. The 2025 compensation plan would award Musk a total of 423 million additional shares of TSLA and give the world's richest man increased voting power, something he has repeatedly stated he needs before unlocking additional Tesla value. Musk sold a substantial amount of Tesla stock to purchase Twitter, now X.
The pay package and other measures, including investment in Musk's xAI company, will be voted on by Tesla shareholders during the annual meeting on Nov. 6.
Morgan Stanley analyst Adam Jonas, a longtime TSLA bull, wrote on Sunday that the compensation plan is a "good deal for Tesla shareholders."
"While the the proof is in the execution, at face value, the proposed compensation package aligns Tesla minority shareholder interest with those of Elon Musk in a way that incorporates operational milestones, profitability milestones and value creation milestones (market cap) while cementing a long-term commitment to the company." Jonas said Sunday.
Tesla Stock Performance
TSLA advanced as high as 538.44 before paring those gains, edging down 1.3% to 346.40 during Monday's stock market. The stock gained 5% to 350.84 last week.
Investors also could use the Aug. 27 short-term high of 355.39 as an early entry. The traditional consolidation buy point is 367.71, according to MarketSurge charts.
Tesla stock jumped 3.6% on Friday, hitting 355.87 intraday, continuing to put a more distance from the 21-day and 200-day moving average on after regaining those levels Wednesday.
TSLA stock is showing higher lows and generally higher highs in recent weeks, a positive trend. However, the EV giant has flashed aggressive entries multiple in the current base, only to quickly fall back.
The relative strength line for Tesla stock has been moving sideways in recent weeks, reflecting Tesla stock's trend of generally moving with the market.
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Tesla stock has a 63 Composite Rating out of a best-possible 99. The stock also has an 86 Relative Strength Rating and a 53 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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