California, the largest American market in Tesla since it began to deliver electric vehicles in 2008, lost support towards the brand in the first quarter, with a fall of sales of 15% in the middle of a tougher competition already measured the protests in the company’s stores throughout the state by the unpopular efforts of the CEO Elon Musk for cutting Doge by the Government.
The company based in Austin, one of the main beneficiaries of the environmental awareness of consumers and the regulations of the golden state, sold 42,322 vehicles this year until March, a reduction with respect to the 49,875 of the same period last year, according to data published Wednesday by the Association of New Cars Concessionaires of California. The fall in the volume reduced its market share to 49.3% in that period, compared to 55.5% of the previous year. It was also the first time that it represented less than 50% of total sales of electric vehicles in the state.
Worldwide, the company registered a 13% drop in the first three months of the year.
The fall of Tesla in California, as well as its total sales in the US during the quarter, was against a wider growth trend for electric vehicles. Total electric sales in the state increased by 7.3 %, to 96,416 units, according to the report. Among the companies that rose the most are GM, which experienced a 62 % increase in the electric vehicles of the Chevrolet, Hyundai and Honda brand, whose new Prologue was the third best -selling model, behind the Model and 3 and 3 of Tesla. Last week, Cox Automotive reported that Tesla sales fell 8.6 % nationwide, despite the fact that sales in the US. UU. Increased 11.4 % during the quarter. Worldwide, the company experienced a 13 % drop in the first three months of the year.
Tesla’s decline coincides with Musk’s controversial decision to be a high -profile member of the administration of President Trump, taking the initiative in the efforts of the so -called Government Efficiency Department (Doge) to reduce federal expend They save lives for developing countries since the 1960s. While the richest human in the world had promised that Doge could eliminate $ 1 billion in expenses for next year, apparently to help compensate for the cost of the tax cuts that Trump wants to extend, now he estimates that the effort will probably find 150 billion dollars in savings at maximum.
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California’s romance with Tesla is coming to an end while his EVS sales collapse
Musk’s disposition to assume such partisan and polarizing role does not benefit the Tesla brand, especially in California, with a Democratic tendency, not even in the US market in general. Caliber, an analysis firm that analyzes the acceptance and confidence of consumers in brands, discovered that Tesla’s reputation score has collapsed 22 points, up to 47, from its last survey. This figure is well below the previous Tesla score, 69, and the national average score of automobile manufacturers, 59, according to Caliber.
Although sales of electric vehicles grew in California and represented 20.8% of all new vehicles sold, slightly below 21% of a year ago, but still almost triple the national level, the growth rate is slowing down and it is not likely to reach the mandatory state objective of 35% of new vehicles sold by 2026.
“The dealers sell what customers want to buy,” said Robb Hernandez, president of the Concessionaires Association, in a statement. “Although the manufacturers we represent are increasing the sales of electric vehicles in California, with the important fall of the sales of Tesla, the penetration in the electric vehicle market is maintained practically unchanged. This places us well below the mandates of sale of electric vehicles that enter into force this year.”
Tesla’s shares fell 5% in Nasdaq, quoting $ 241.55 on Wednesday. They carry a 40% drop this year. The company plans to publish its financial results of the first quarter on April 22.
This article was originally published by Forbes Us.
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