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TESLA new-car registrations fell 24 per cent year over year 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 on Thursday (Jul 18) by the California New Car Dealers Association (CNCDA).
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 per cent of California’s battery-electric car market in the first half, down from 64.6 per cent a year ago, the CNCDA report said. Overall Tesla sales in California are down 17 per cent so far this year.
“Tesla’s allure seems to be wearing off, signalling potential trouble for the direct-to-consumer manufacturer,” the trade group’s analysts said.
New electric vehicle (EV) models have posed a competitive threat to Tesla, which has a relatively older lineup of cars. Ford Motor, Hyundai Motor and Rivian Automotive are all among the companies that have grabbed a bigger slice of California’s EV 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 criticised 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.
The company registered 52,211 vehicles in California in the second quarter, up 4.4 per cent from the 50,027 registered in the second quarter. Tesla delivered 443,956 cars globally during the period, meaning the state accounts for roughly 12 per cent of the EV maker’s sales. BLOOMBERG
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