According to the latest report from the California New Car Dealers Association, Tesla's car sales in California declined for the second consecutive quarter
The Zhitong Finance App learned that the latest report from the California New Car Dealers Association indicates that Tesla (TSLA.US) car sales in California declined for the second consecutive quarter, which may mean that the company's market acceptance in the state is close to its peak. The industry group mentioned in a statement on Monday that although Tesla still leads in sales in California, its new car registrations fell 7.8% year over year in the first quarter of this year. In the fourth quarter of last year, Tesla's registration volume had already dropped 9.8%.
The report further shows that Tesla's share of the California electric vehicle market has also declined, by 6.4 percentage points, and is currently 55.4%. Meanwhile, other luxury car brands such as Mercedes-Benz and BMW have made some headway in the California market with the introduction of new electric vehicles, although the share of electric vehicles in the overall market has declined slightly.
The California New Car Dealers Association mentioned in its statement that California's enthusiasm for Tesla may have reached its peak. The organization also pointed out that Tesla's market dominance is weakening, and traditional car manufacturers are speeding up the pace to deal with competition.
Tesla faced the dual challenge of increasing competition and weak overall market demand this year. The company announced last week that it will accelerate the launch of new, more affordable models and focus on the fully autonomous driving technology that founder Musk is pursuing.
Tesla's newest model, the Cybertruck, is developing slowly. According to a trade group spokesperson quoting data from Experian Automotive, Cybertruck's sales volume in California was not enough to be included in the report, but 574 vehicles were registered in California in the first quarter.
Tesla's slowdown in the California market is worth watching. Although Tesla's headquarters have now moved to Austin, the company was initially founded in California. Early tech savvy users in Silicon Valley and consumers in Los Angeles were key factors in the company's early success.