LOS ANGELES (XINHUA) – Tesla’s grip on the electric vehicle (EV) market in California, United States (US) appeared to be loosening, with new car registrations plummeting 24 per cent year-over-year in the second quarter, according to the California New Car Dealers Association (CNCDA), reported Xinhua.
This marks the third consecutive quarter of declining sales for the EV giant in the Golden State, raising concerns about Tesla’s future dominance, according to a report released by the organisation on Thursday.
While the Tesla Model Y remained California’s best-selling electric car, the company’s overall market share shrunk significantly. Tesla’s hold on the battery electric car market dipped to 53.4 per cent in the first half of this year, down from 64.6 per cent during the same period last year. Tesla’s total California sales were down 17 per cent year-to-date.
The CNCDA report suggested a potential erosion of Tesla’s brand appeal, saying, “Tesla’s allure seems to be wearing off, signalling potential trouble for the direct-to-consumer manufacturer.”
Several factors are likely contributing to Tesla’s California woes. Increased competition from newer EV models is a major challenge.
Established automakers like Ford and Hyundai, along with new players like Rivian, are all vying for a larger share of the growing California EV market.
Notably, the battery electric vehicle’s (BEV) market share accounted for 21.9 per cent of all auto sales in the state, said the report, highlighting the significant market shift towards EVs.
“In stark contrast, mainstay brands like Toyota, Hyundai, and Ford are on the upswing, with significant gains and excitement around new EV models that Californians seem eager to adopt,” said the CNCDA in a press release. This year, Toyota’s BEV registrations rose 108.1 per cent, and Hyundai’s BEV registrations rose 65.7 per cent.
