Tesla’s California market share is falling despite steep price cuts

Data showed today, Friday, that Tesla’s market share in its main market in California declined in the first quarter of the year despite significant price cuts as competitors stepped up.

Tesla Inc (TSLA.O) controlled 59.6% of the electric battery 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.

Competitors such as Volkswagen AG (VOWG_p.DE) and General Motors subsidiary Chevrolet and Kia Corp. (000270.KS) increased their California market shares during this period, although they remained in the single digits each.

Tesla sales in California accounted for 16% of the automaker’s global deliveries last year, according to Reuters calculations. California is the largest US state for zero-emission cars.

Tesla CEO Elon Musk’s pursuit of Twitter and the Republican embrace have raised concerns about the Tesla brand, especially in liberal states like California.

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

The price cuts, which were also implemented in China, Europe and other countries, affected Tesla’s margins for the first quarter, sending its shares down about 10% on Thursday.

Musk indicated this week that the electric car maker will prioritize sales growth over profit in a weak economy.

Reporting by Hyunjoo Jin; Edited by William Mallard

Our standards: Thomson Reuters Trust Principles.

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