Lowest Market Share Since 2017
From January to March, Tesla held 59.6% of the battery electric market in California, down from 72.7% in 2022, marking the lowest share since 2017, based on data from the California Energy Commission.
Competitors Gain Ground in California
Volkswagen, Chevrolet, and Kia Corp saw growth in their California market shares during this period, though they remain in the single digits.
Importance of California Sales
In 2022, Tesla's sales in California accounted for 16% of the company's global deliveries, as the state is the largest US market for zero-emission vehicles.
Elon Musk's Actions Impact Brand Perception
Tesla CEO Elon Musk's interactions with Twitter and Republicans have raised concerns about the brand's image, particularly in liberal-leaning states like California.
Multiple Price Cuts in Key Markets
Since January, Tesla has reduced prices in the United States six times and implemented cuts in China, Europe, and other countries.
First-Quarter Margins Suffer
These price reductions negatively impacted Tesla's first-quarter margins, causing a nearly 10% drop in share value on Thursday.
Musk Prioritizes Sales Growth Over Profit
Elon Musk recently indicated that Tesla would focus on sales growth instead of profit in a struggling economy.
