Tesla Loses Electric Vehicle Market Share Amid Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Share Decline: Tesla has lost significant market share in the electric vehicle sector over the past year due to increased competition, brand backlash, and the discontinuation of federal tax credits, with deliveries falling 9% in 2025 while global EV sales rose 25%, indicating serious challenges ahead.
- Robotaxi Service Expansion: Tesla's autonomous ride-sharing service launched in Austin has opened to all users and rapidly expanded its service area, validating its camera-only strategy, which is expected to allow faster market share growth compared to competitors.
- Full Self-Driving Technology Outlook: Tesla's Full Self-Driving (FSD) service is anticipated to gain approval in Europe by February 2026, which would significantly expand its market, although FSD currently generates negligible revenue; Morgan Stanley predicts autonomous car sales could reach $3.3 trillion annually by 2040.
- Optimus Robot Potential: Tesla aims to launch its humanoid robot, Optimus, by late 2027, with Musk claiming it could add $20 trillion to the company's future market value, despite a history of overpromising on AI products, Optimus could still become a major revenue source in the future.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 435.200
Low
25.28
Averages
401.93
High
600.00
Current: 435.200
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.








