Tesla’s California Sales Plunge With More Competitors Moving In

Tesla Inc. new-car registrations fell 24% in California in the second quarter, the third time in a row the carmaker’s sales have fallen in the Golden State, according to a report released Thursday by the California New Car Dealers Association.

Tesla Inc. new-car registrations fell 24% in California in the second quarter, the third time in a row the carmaker’s sales have fallen in the Golden State, according to a report released Thursday by the California New Car Dealers Association.

While the Model Y remains the state’s top-selling car, the Elon Musk-led company has seen its market share falter throughout the year. Tesla accounted for 53.4% of California’s battery-electric car market in the first half, down from 64.6% a year ago, the CNCDA report said. Overall Tesla sales in California are down 17% so far this year.

Trending Cars

Find more Cars

“Tesla’s allure seems to be wearing off, signaling potential trouble for the direct-to-consumer manufacturer," the trade group’s analysts said.

New EV models have posed a competitive threat to Tesla, which has a relatively older lineup of cars. Ford Motor Co., Hyundai Motor Co. and Rivian Automotive Inc. are all among companies that have grabbed a bigger slice of California’s electric-vehicle market. Overall, battery-powered cars account for about a fifth of auto sales in the state, while California makes up a third of US EV sales.

Musk’s standing in California, the largest EV market in the US and a Democratic Party stronghold, has also taken a hit as he’s openly criticized the state and embraced Republican political figures, including former President Donald Trump. This week, Musk got into a social media dispute with Governor Gavin Newsom over a decision to move the headquarters of both SpaceX and X to Texas from California. The CEO also relocated Tesla’s headquarters to the Lone Star State in 2021.

Tesla is the second-bestselling car brand in California, but CNCDA believes it may have peaked. Earlier this month, the company reported global second-quarter sales that were lower than a year ago, but better than analysts expected.

This article was generated from an automated news agency feed without modifications to text.

Check out Upcoming Cars in India 2024, Best SUVs in India.

First Published Date: 18 Jul 2024, 23:27 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.