A 24% plunge! Tesla's new car registration volume in California has declined for three consecutive quarters
Tesla's registered volume in California has declined for three consecutive quarters by 24%, facing challenges of declining sales and competitive pressure. Consumers are more inclined to purchase cheaper hybrid cars, and Tesla's appeal seems to be weakening. In addition, image issues of Tesla's CEO Musk have also affected the company's sales. Although Tesla's Model Y is still the best-selling model in California, its market share is decreasing. Tesla's market share in Europe has also declined, ranking tenth in the market. The challenges facing Tesla are becoming increasingly severe
According to the industry data released on Thursday, from April to June this year, the registration of Tesla (TSLA.US) cars in California dropped by 24%. This marks the third consecutive quarter of declining sales in its key market, indicating increasing challenges for the electric car manufacturer.
As consumers opt for cheaper hybrid cars, high interest rates, and intense competition have weakened the demand for electric vehicles.
Potential customers of Tesla in the United States have been avoiding purchasing its electric cars, partly due to the polarizing image of CEO Elon Musk.
Musk's support for Republicans and outspoken comments have raised concerns about the Tesla brand, especially in liberal states like California, which accounts for 10% of the company's global deliveries.
Following the failed assassination attempt on Republican candidate Trump last Saturday, the world's richest man publicly supported Trump for the first time in the U.S. presidential election.
According to a report from the California New Car Dealers Association, Tesla's registration in California dropped to 52,211 units in the second quarter.
During this period, the market share of pure electric vehicles only decreased by 1.3%. In contrast, sales of hybrid cars in California surged by 22%.
The report stated, "Tesla's appeal seems to be waning, indicating that this consumer-facing manufacturer may run into trouble."
From January to June, Tesla's registration in California decreased by 17%, while competitors such as Hyundai, Kia, BMW (BMWYY.US), Mercedes-Benz, Ford (F.US), and Rivian (RIVN.US) achieved double-digit growth in sales.
Tesla's Model Y remains the best-selling model in the state, but its market share in the first half of the year dropped from 64.6% in the same period last year to 53.4%.
Furthermore, according to the registration data from the European Automobile Manufacturers' Association (ACEA), Tesla's market share in Europe also slightly declined to 2.2%, ranking tenth in market share.
Tesla is set to announce its latest quarterly performance next Tuesday local time. In the second quarter, Tesla delivered a total of 443,956 vehicles, exceeding Wall Street's expectation of 439,000 units, but down by approximately 4.8% from the same period last year when it delivered 466,000 units