Data from the California Energy Commission revealed that Tesla’s market share in California decreased in the first quarter of the year, despite the company’s aggressive price cuts. During this period, competitors like Volkswagen AG, General Motors Co’s Chevrolet, and Kia Corp increased their market shares in the region.
Reuters calculations based on the data revealed that Tesla Inc. had controlled 59.6% of the battery electric market in California from January to March, down from 72.7% for all of 2022 and the lowest since 2017. Despite this setback, Tesla’s sales in California still made up 16% of the automaker’s global deliveries last year, making it a critical state for zero-emission vehicles.
Concerns have been raised about the Tesla brand, particularly in liberal states like California, due to CEO Elon Musk’s Twitter engagement and Republican party affiliation. Tesla has implemented price cuts since January, with six rounds of reductions in the United States, Europe, and China.
Tesla’s first-quarter margins were negatively affected by the price reductions, causing its shares to drop by almost 10% on Thursday. In light of the challenging economic environment, CEO Elon Musk stated that Tesla would prioritize sales growth over profits.
