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Tesla's California market share tumbles despite aggressive price cuts

Published 04/21/2023, 09:41 PM
Updated 04/22/2023, 10:00 AM
© Reuters. FILE PHOTO: A Tesla vehicle drives past Tesla's primary vehicle factory in Fremont, California, U.S. May 11, 2020. REUTERS/Stephen Lam/File Photo

© Reuters. FILE PHOTO: A Tesla vehicle drives past Tesla's primary vehicle factory in Fremont, California, U.S. May 11, 2020. REUTERS/Stephen Lam/File Photo

By Hyunjoo Jin

SAN FRANCISCO (Reuters) -Tesla's market share in its key California market tumbled in the first quarter of the year despite aggressive price cuts as rivals stepped up, data showed on Friday.

Tesla (NASDAQ:TSLA) Inc 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, according to Reuters calculations based on data from the California Energy Commission.

Rivals such as Volkswagen AG (OTC:VWAGY), General Motors Co (NYSE:GM)'s Chevrolet and Kia Corp increased their market shares in California during the period, although they remain in the single digits each.

Tesla's sales in California accounted for 16% of the automaker's global deliveries last year, according to Reuters calculation. California is the biggest U.S. state for zero emission vehicles.

Tesla CEO Elon Musk's pursuit of Twitter and embrace of Republicans has sparked concerns about Tesla's brand, especially in liberal states like California.

Tesla has been slashing prices in the United States since January, cutting prices six times in the key market.

© Reuters. FILE PHOTO: A Tesla vehicle drives past Tesla's primary vehicle factory in Fremont, California, U.S. May 11, 2020. REUTERS/Stephen Lam/File Photo

The price cuts, which were also carried out in China, Europe and other countries, hit Tesla's first-quarter margins, pushing its shares down nearly 10% on Thursday.

Musk this week signaled the EV maker would prioritize sales growth ahead of profit in a weak economy.

Latest comments

Of course it decreased in terms of market share. Kia, GM, Volvo, and the flammable Fords didnt even have their cehicles available. Now rhey do so of course the percentage decreased. The real stat that means something is number of vehicles delivered.
100%
It doesn’t matter what Elon’s political views are. His actions are single-handedly the largest contribution to clean energy of any endeavor I. The 21st century. The politically correct Volkswagen etc took quite awhile to be as green as Tesla was right out of the gate. So who did most for the planet?that’s if you believe that electricity is somehow a better source of energy than oil. —when electricity isn’t a source of energy, it’s a product of energy sources like oil, coal , nuclear and hydro—truly the only viable sources for electricity at this time.
60% fossil fuel, 18% nuclear and 21% renewable. so I guess 78% would prove mark correct and brad wrong again
Oil and coal?
of that 60% fossil fuel, 19% + is coal and 0.6% is oil.
I love how these news reporters can't wait to forecast fear and uncertainty of markets falling and how soon they forget that people make money when markets drop just the same as when they prices are rising so they're not scaring anybody.
not really but ok
It’s called baiting the bears into the trap.
It was inevitable that the competition would slowly take some market share as their offerings improved. Naysayers should note Tesla still commands a majority of the market, whereas rivals are only in the single digits. Their lead is still leaps and bounds ahead.
I agree with you’re comment. But i still think that its time for Tesla to be more innovative on the overal design of their Vehicles, both inside an outside of them, to keep up with the competition. Over the last several years , they have only made Software changes etc.
Expensive Mediocre cars plus an old line up...
exactly. way overpriced
wow
Because he’s exposed him self as the type of jerk his customer base hates. Its embarrassing to drive a tesla now
a guy that voted for Biden but noticed the commies went to far when they were using the government and big tech to censor free speech and did something about it.
for all the whining liberals here, does that mean you are now pro gas ? since Tesla is the only company that has the technology to go green. All others are falling short
Nutty
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