In its old home state of California, Tesla still leads the EV manufacturing industry, but as rivals enhance their product lines, the company’s market share continues to decline.
According to new car registration statistics from the California Energy Commission, Tesla had 73 percent of the battery electric market in California from January to September, the lowest share since 2018. Tesla’s market share in California has fallen to its lowest level since 2018. In 2021 and 2020, the automaker held a 75 percent and 79 percent share, respectively.
Now, it’s important to note that Tesla sold more electric vehicles in California in the first three quarters of 2022—more than 150,000—than it did at the same time a year earlier. Nevertheless, the rise in sales of more recent models by competitors, most notably Hyundai Motor Group, is to blame for the fall in market share.
Tesla’s sales in California accounted for 15% of the EV manufacturer’s worldwide deliveries in 2017, according to calculations made by Reuters using government data from January to September.
California, where the company’s first manufacturing is located, is the largest US market for zero-emission cars, which also include hydrogen fuel cells and plug-in hybrid-electric vehicles. 18% of all new car sales in California so far this year have been of zero-emission vehicles, the bulk of which are entirely electric.
In addition to topping EV sales, the automaker also led brand consideration in California, where this year, 53 percent of prospective purchasers of electric vehicles evaluated Tesla, citing a report by California auto consultant AutoPacific. Mind you, the brand consideration score for Tesla is also lower than it was in the prior study from last year, which put it at 58 percent.
According to Ed Kim, president of AutoPacific, quoted by Reuters, market share for Tesla in California has reached a saturation point, and he anticipates that competitors will continue to erode market share. He also anticipates that Tesla sales will increase going forward.
Some experts think that Tesla CEO Elon Musk’s recent purchase of Twitter has raised doubts about the EV brand, particularly in liberal regions like California. For instance, according to Guidehouse Insights analyst Sam Abuelsamid, the Twitter merger may have put off some potential Tesla customers who had previously backed Musk and his efforts to promote sustainable energy.
Given that Elon Musk only recently finalized the acquisition of Twitter after initially making an offer in April 2022, it is perhaps too soon to judge whether it is an influence.