According to data from the California New Car Dealers Association, registrations of Tesla vehicles in the state dropped by about 8% in the first quarter of 2024, marking the second consecutive decline. Despite this, Tesla’s Model Y crossover emerged as the best-selling new vehicle in California.
The data revealed that approximately 50,000 new Tesla vehicles were registered in California in the quarter ending March 31, highlighting the state’s significance as a key market for the electric vehicle (EV) maker led by Elon Musk. However, globally, Tesla experienced a decline in quarterly deliveries for the first time in almost four years, signaling challenges in stimulating demand despite price cuts and incentives.
The report also noted that Tesla’s market share for battery electric vehicles (BEVs) in California decreased from 61.8% to 55.4% year-over-year, as competitors such as Mercedes, BMW, Audi, Rivian, and Hyundai saw significant increases in EV sales during the same period. This decline contributed to the overall market share for BEVs in the state falling from 21.2% to 20.9%.
“The California market continues to evolve rapidly, with consumers showing a growing preference for less expensive and longer-range gasoline-hybrid electric vehicles,” said a spokesperson from the California New Car Dealers Association, highlighting the shifting trends in the EV market.
Despite facing increased competition and a decline in market share, Tesla’s Model 3 compact sedan and Model X premium SUV were still among the top three best-selling battery electric and plug-in hybrid vehicles in California. Tesla’s ability to maintain a strong presence in the state’s EV market will be closely watched as competition in the EV sector continues to intensify.
