The latest report released by the California New Car Dealers Association shows that Tesla's car sales in California have declined for the second consecutive quarter, indicating that the company's popularity in California may have peaked.
The industry organization stated on Monday that although Tesla is still producing some of its best-selling models in California, its total new car registrations in the first quarter decreased by 7.8% year-on-year. In the last quarter of last year, Tesla's registration volume had already declined by 9.8%.
The report also showed that Tesla's share in the California electric vehicle market decreased by 6.4 percentage points to 55.4%. At the same time, new electric vehicles launched by other luxury car brands such as Mercedes Benz and BMW have helped these companies make progress in California, although the market share of electric vehicles has slightly declined during this period.
The association stated in a statement that California's enthusiasm for electric vehicle giant Tesla may have reached its peak. The organization also stated that Tesla's dominant position is weakening, and "traditional manufacturers are intensifying their actions."
Since the beginning of this year, this electric vehicle manufacturer led by Elon Musk has been facing increasing competition and weak industry demand. Tesla announced last week that it will accelerate the launch of cheaper new models while prioritizing Musk's pursuit of fully autonomous driving technology.
In addition, Tesla's latest model, Cybertruck, has consistently had mediocre sales. A spokesperson for the association cited data from Experian Automotive stating that the sales of this stainless steel shell truck were not high enough to be included in the report, with 574 vehicles registered in California in the first quarter.
Analysts have pointed out that for Tesla, the slowdown in California is worth noting. Although Tesla's headquarters has now relocated to Austin, the company was originally established in California. Early users in Silicon Valley and consumers in Los Angeles were key factors in the company's previous success.
In California, the number of low emission cars is still on the rise. In the first quarter, all battery power, hybrid vehicles, and fuel cell vehicles accounted for 37.5% of the state's total car registrations, up from 11.6% in 2018. According to the report, gasoline powered cars accounted for 60% of car registrations in the first quarter of this year.