Given nothing more than the headline number, it would be easy to believe electric vehicle maker Tesla (TSLA +5.14%) is firing on all (proverbial) cylinders...at least within the United States. Although down slightly from the first quarter's 54.2% share of the U.S. electric vehicle market, Cox Automotive reported that the iconic EV brand accounted for 50.5% of the country's second-quarter EV sales -- as measured in units -- holding onto an industrywide majority reclaimed in the final quarter of last year for the first time since 2023.
Now read the fine print. Tesla is only enjoying a market share advantage because its domestic rivals are suffering bigger EV sales setbacks than Tesla did. Total electric vehicle sales in the U.S. fell 20% during the second quarter, whereas Tesla's total unit sales fell 13% from 143,535 automobiles in the second quarter of last year to 124,800 units in Q2 of this year.
The United States isn't Tesla's only market. Europe and China are key electric vehicle markets as well, and the company's worldwide second-quarter total deliveries improved 25% year over year, to 480,126 automobiles.
Even so, Tesla is losing market share in both of those markets, largely to China's BYD, but also to Chinese EV manufacturers Geely and Changan in China, and Volkswagen in Europe.
Of course, electric vehicles could soon be a secondary business for Tesla anyway. The company continues developing AI-powered humanoid robots that CEO Elon Musk has suggested could begin commercial production before the end of next year.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.
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