Tesla's market share in U.S. electric vehicle sales has dropped to 49.7% in the second quarter of 2024, marking its first decline below 50% since 2020.

The company has faced two consecutive quarters of declining sales, indicating a significant shift from its previous growth trends.

In the first half of 2024, Tesla's financial performance has been impacted, with its growth primarily driven by non-automotive revenue.

According to a JD Power study, Tesla is struggling to attract new electric vehicle buyers.

An annual owner satisfaction survey reveals that traditional automakers are better connecting with their electric vehicle customers than Tesla.

The profile of the average electric vehicle buyer is evolving, with traditional automakers effectively addressing consumer needs.

This decline in Tesla's market share presents opportunities for traditional automakers, such as Chevrolet and Ford, to gain ground.

Chevrolet is launching new electric versions of its popular models, while Ford has seen a remarkable 61% increase in EV sales during the second quarter of 2024.

Recent product launches from traditional manufacturers have reportedly surpassed Tesla in owner emotional attachment and excitement.

JD Power's senior director Frank Hanley highlighted that traditional vehicles are introducing models with enhanced features and usability.

Tesla's price-cutting strategy has not been sufficient to maintain sales growth amid a yearlong slowdown in electric vehicle demand.

Despite loyalty from existing customers, Tesla's appeal to newer buyers is diminishing.