According to data released on Friday, Tesla's market share in California declined in the first quarter of 2023, despite the company's aggressive price cuts, as competitors
increased their presence.
From January to March, Tesla's share of the battery electric market in California was 59.6%, 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. During the same period, rivals such as Volkswagen, General Motors' Chevrolet, and Kia increased their market shares, although they remained in the single digits.
Tesla's sales in California accounted for 16% of the automaker's global deliveries last year, and California is the largest U.S. state for zero-emission vehicles. Elon Musk's recent Twitter activity and embrace of Republicans has raised concerns about Tesla's brand, particularly in liberal states like California. Tesla has lowered prices in the United States since January, reducing them six times in the critical market.
However, these price cuts, which were also implemented in China, Europe, and other countries, impacted Tesla's first-quarter margins, causing its shares to drop by nearly 10% on Thursday. In a signal this week, Musk indicated that the EV manufacturer would prioritize sales growth over profit in a sluggish economy. Photo by Steve Jurvetson, Wikimedia commons.