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Tesla’s market share in California falls despite price cuts


The market share of Tesla in California, its main market, fell in the first quarter of the year despite aggressive price cuts as rivals stepped up, data the company released on Friday showed (21).

Tesla controlled 59.6% of the electric car market in California from January through March, up from 72.7% for all of 2022 and the lowest since 2017, according to Reuters calculations based on data from the California Energy Commission.

Competitors such as Volkswagen, General Motors and Kia Corp increased their market share in California during the period, although each remains in the single digits.

Tesla’s sales in California accounted for 16% of the automaker’s global shipments last year. California is the largest US state for zero-emission vehicles.

Tesla CEO Elon Musk’s push via Twitter and Republican buy-in have raised concerns about the Tesla brand, particularly in liberal states like California.

Tesla has cut prices in the US since January and cut prices in the main market six times.

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The price cuts, which were also carried out in China, Europe and elsewhere, hit Tesla’s margins in the first quarter and sent shares down almost 10% on Thursday.

Musk signaled this week that the electric-vehicle maker would prioritize sales growth over profit in a weak economy.


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