Elon Musk publicly abandoned California in favor of Texas. Now, Golden State customers are taking revenge by abandoning Tesla in droves.
In California, where there are Teslas as far as the eye can see and fast-charging stations plentiful, new drivers are opting out of the $605 billion auto universe led by Elon Musk.
Among the three best-selling passenger cars in California in the first quarter of this year, Elon Musk’s Tesla Model 3 fell from first to third place, behind the Toyota Camry and Honda Civic, according to the former’s automotive outlook California New Car Dealers Association quarter. Monday. Toyota was the top brand in California this quarter, seeing a 9.3% increase in registrations, followed by Honda, which has seen an 18.6% increase so far this year. Tesla registrations have fallen in California since the start of the year, with a drop of 7.8% in the first quarter, after a drop of 9.8% in the last quarter of 2023.
California accounts for 32.5% of battery electric vehicle registrations in the United States, and Tesla’s low popularity among new car registrants comes at a particularly vulnerable time for Tesla as a company and for its CEO. Musk faces significant pressure from investors who want to see him adopt the standards of a more traditional CEO, move away from his grandiose social media presence and provide a more concrete timeline for producing a Tesla at a price affordable. The company announced last week that its revenue fell 9%, its biggest decline since 2012, while its net profit fell 55% in the first quarter. Three of its top executives, including famous insider Drew Baglino, resigned within two weeks, further rattling investors.
“Californians’ love affair with electric vehicle giant Tesla may have reached its peak,” the CNCDA said in a statement Monday. The group tracks trends in the California new vehicle market, using data from Experian Automotive. The CNCDA represents franchised new car and truck dealerships based in California.
“The numbers don’t lie,” said CNCDA President Brian Maas. “They indicate that Tesla’s incredible growth for years has now stopped or certainly slowed in the most recent report.”
The market share of battery electric vehicles fell from 21.5% in 2023 to 20.9% in the first quarter, the group found. The slowdown in sales is difficult to analyze, Maas said, but it could be due to the price of Teslas relative to other vehicles, problems with charging infrastructure or the fact that buyers who wanted to own a Tesla have already purchased the car.
“Attracting the mass market is a challenge Tesla faces,” Maas said. “Other dealers offer a wider range of very competitive vehicles, so Tesla does not have an EV space largely to itself like it did a few years ago.”
Another factor that could be contributing to Tesla’s slowing sales is Musk himself. According to Reuters, market research firm Caliber found that consumer interest in Tesla fell from 70% in November 2021 to just 31% in February 2024, in part due to Musk’s apparent acceptance of the theories right-wing conspiracy and other polarizing political views. In California, where 47% of registered voters are Democrats compared to 24% Republicans, Musk’s antics could be particularly unappealing.
Granted, this is just an early indicator of Tesla’s decline in popularity. Tesla remains the top seller of electric vehicles in California with the Model Y, Model 3 and Model %. Mercedes and BMW saw the biggest sales increases among battery electric vehicles in the first quarter, with Mercedes up 3% and BMW up 2.4%.
This story was originally featured on Fortune.com
yahoo
