Tesla Gets Slower in Golden State
The EV maker continued to lose market share in the state in Q3
Tesla has been losing ground in the EV market-leading state for two years now.
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Tesla keeps losing in its former home state.
The electric-vehicle maker’s third-quarter sales in California fell 9% for a total of two consecutive years of declines in the country’s EV adoption leader, according to data compiled by the California New Car Dealers Association.
Tesla’s sales in the state are down 15% so far this year. The decline comes despite a spike in EV sales there and across the country as consumers rushed to lock in federal tax credits that expired Oct. 1. All no-emission vehicle sales comprised about 25% of new-vehicle deliveries in the quarter, bumping total sales by 4%.
Tesla took just 10% of total new-vehicle market share in California for the quarter, the trade group reported.
As EVs are set to wane in the fourth quarter following the end of tax credits – California decided not to replace the federal breaks – hybrids are on the rise. The power train made up 19% of new-vehicle registrations in the quarter and year to date.
"Dealers are seeing real enthusiasm from customers for the latest hybrid and electric technologies, especially as the mainstay brands expand their lineups," said Robb Hernandez, CNCDA chairman and president of Camino Real Chevrolet. "Californians want choices that fit their lives and budgets."
Combined hybrid, plug-in hybrid and no-emission vehicles have made up 44% of the state’s new-vehicle sales so far this year, the group reported.
California had a mandate that all new-vehicle sales be no-emission vehicles by 2035. Congress struck that down this year, though the state has sued the Trump administration over the reversal.
Meanwhile, the state's insurance department also recently took enforcement action against Tesla's insurance arm, claiming mismanagement of consumer claims.
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