Tesla’s electric vehicle registration in California fell 15.1% in the first quarter, and industry data illustrate the challenges of declining and growing increases in Elon Musk-led automakers in the largest U.S. market.
According to the CNCDA, the California New Car Dealer Association, which is seen as a precursor to EV trends, Tesla’s share has often been seen as a pioneer in EV trends, with Tesla’s share falling from 55.5% the previous year to 43.9%.
Sales of the state’s overall zero-emission vehicle also rose 7.3% over the same period.
“The backlash against the aging product lineup and mask political initiatives is likely a key factor in the decline in Tesla BEV’s market share,” the industry group said.
The company reported earlier this month that first quarter sales fell by at least 13% in nearly three years worldwide, with pushbacks against musk, increased competition and customers waiting for a refreshment of their bestselling Model Y.
The Trump administration’s government efficiency billionaire leader, along with activists opposed his role in reducing the federal workforce and his role in cancelling funding for global humanitarian programs, has sparked widespread protests across the United States.
The popularity of masks has declined among liberal voters who have traditionally tended to buy electric vehicles, particularly in eco-friendly markets such as California.
California accounts for nearly a third of Tesla’s revenue in the US, according to Reuters calculations based on Cox Automotive and CNCDA data.
The CNCDA also expects that the state’s new vehicle registration will fall 2.3% from last year due to US trade policies.
The Model Y remained the best-selling EV in the state, but its sales plummeted around 30% in the first quarter compared to a year ago.
Tesla said earlier this month that retooling the production line of the Refresh Model Y at four factories lost several weeks of production in the first quarter.
Meanwhile, analysts attributed a portion of the decline in overall sales from January to March to some of the month of January to March to customers awaiting a cheaper version of their refreshed Model Y crossover.
Investors will closely monitor Tesla’s earnings report on Tuesday to show whether the company will maintain its annual growth forecast despite the challenging quarter.
