Tesla's position in California, the electric vehicle hub of the United States, has declined! Market share is below 50%
The California New Car Dealers Association stated on Wednesday that Tesla's market share in the state's electric vehicle market has dropped from 55.5% a year ago to 43.9% in the first quarter of this year. As Tesla's registrations fell by 15%, sales of all other electric vehicle brands increased by 35% at the beginning of this year
According to new registration data from California, Tesla no longer holds the majority share of new electric vehicle registrations in the state, which accounts for nearly one-third of the nation's zero-emission vehicle purchases.
The California New Car Dealers Association stated on Wednesday that Tesla's market share in the state's electric vehicle market has dropped from 55.5% a year ago to 43.9% in the first quarter of this year. While Tesla's registration volume fell by 15%, all other electric vehicle brands saw a 35% increase in sales at the beginning of this year.
The California New Car Dealers Association noted in its quarterly report:
Aging product lines and public discontent with Musk's political behavior may be key factors contributing to the decline in Tesla's electric vehicle market share.
Despite American consumers rushing to purchase vehicles before President Trump's auto tariffs take effect this month, Tesla's sales still declined during the quarter. Although all models sold by Tesla in the U.S. are produced in California or Texas, some imported components that the company relies on will face higher tariffs starting in early May.
In addition to the controversies surrounding Musk's political statements, Tesla also faced manufacturing disruptions related to its most important model, the Model Y, in the first quarter. The company suspended production at all global assembly plants to adjust the production line for a redesign of its best-selling model.
In the first three months of this year, Tesla sold 42,322 vehicles in California, primarily the Model Y SUV and Model 3 sedan. These two models remain the best-selling electric vehicles in California, followed closely by the Honda Prologue and Hyundai Ioniq 5 SUV.
Tesla's Cybertruck registered 2,282 units in the quarter, ranking eighth, better than the Ford F-150 Lightning, which ranked tenth.
According to the California New Car Dealers Association, California is the largest electric vehicle market in the U.S., accounting for 31.1% of registrations last year. Tesla was headquartered in Silicon Valley until Musk moved the company's headquarters to Austin, Texas, at the end of 2021