Tesla Inc. new-car registrations fell 24% year-over-year in California in the second quarter, marking the third consecutive quarter of declining sales for the electric carmaker in the Golden State, according to a report released by the California New Car Dealers Association.
While the Model Y continues to be the top-selling car in California, Tesla’s market share has been decreasing steadily. The report indicated that Tesla held 53.4% of California’s battery-electric car market in the first half of the year, down from 64.6% a year ago. Overall Tesla sales in California have dropped by 17% so far this year.
Industry experts are pointing to increased competition from new electric vehicle (EV) models as a factor in Tesla’s declining sales. Companies like Ford Motor Co., Hyundai Motor Co., and Rivian Automotive Inc. have introduced compelling EV options, challenging Tesla’s market dominance. Currently, battery-powered cars account for about 20% of auto sales in California, a state that represents one-third of U.S. EV sales.
The diminishing allure of Tesla’s brand is a concern for the direct-to-consumer manufacturer, according to analysts. The company’s older lineup of cars may be losing appeal to consumers seeking the latest EV technology and features.
Moreover, Tesla’s CEO Elon Musk’s relationship with California has also been strained, with recent public disputes with Governor Gavin Newsom and a decision to relocate the company’s headquarters to Texas. This shift in headquarters and a series of controversial statements by Musk have potentially impacted Tesla’s standing in California, a crucial EV market and Democratic stronghold.
Despite the challenges in California, Tesla reported better-than-expected global second-quarter sales, indicating a more nuanced picture of the company’s performance. The EV maker delivered 443,956 cars worldwide during the period, with California accounting for approximately 12% of total sales.
The CNCDA believes that Tesla’s position as the second-bestselling car brand in California may have peaked, raising questions about the company’s future trajectory in the state and beyond. As the EV market continues to evolve and competitors gain momentum, Tesla faces a shifting landscape that could impact its market position and consumer appeal.
This article was generated from an automated news agency feed without modifications to the text, providing insights into the current state of Tesla’s sales in California and the broader implications for the electric vehicle industry.
Sources:
https://auto.hindustantimes.com/auto/cars/teslas-california-sales-plunge-with-competitors-moving-in-41721335244567.html
