California saw a decrease in Tesla's sales figures during the year 2024
In 2024, the electric vehicle (EV) market in California faced economic challenges due to high interest rates and affordability concerns. Amidst these challenges, Tesla, a key player in the stock market, experienced a decline in its market share.
Tesla's overall market share in California shrank from 13% to 11.6% in 2024. The company's share of the zero-emission vehicle market also decreased, dropping from 60% in 2023 to 52.5% in 2024. This decline came as other companies, such as BYD and MG, gained market share in California. Honda, Hyundai, Cadillac, and Lincoln also saw double-digit increases in registrations, eroding Tesla's overall market share.
Local lawmakers have drawn scrutiny towards Tesla due to its headquarters move and CEO's political stance. This, combined with the economic challenges, may have contributed to Tesla's decline in the stock market today.
Tesla implemented aggressive price cuts to address EV demand issues in California. However, this move did not seem to have a significant impact on the company's sales. Model 3 sales for Tesla dropped by 36% in 2024, while the Model X and Model Y saw a decrease in registrations as well.
Despite Tesla's decline, the overall EV market in California continued to grow. Excluding Tesla, EV registrations in California grew by 20% in 2024. This growth was driven by a variety of factors, including the increasing popularity of EVs and the entry of new players into the market.
Other legacy automakers and new EV startups are contributing to growing competition for Tesla. For instance, the Cybertruck was among the top-10 best-selling BEV models in 2024, coming in sixth place. The Model X was also among the top-10 best-selling PHEV models, coming in eighth place.
Despite the challenges faced by Tesla in 2024, the Model Y remained California's best-selling vehicle with 128,923 registrations. Overall, California's EV market registrations increased by 1.2% in 2024, indicating a steady growth in the adoption of electric vehicles.
As the EV market in California continues to evolve, it will be interesting to see how Tesla responds to the increasing competition and economic challenges in the stock market. With new players entering the market and existing ones improving their offerings, the future of the EV market in California remains uncertain but promising.
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