Tesla Slashes Vehicle Registration By 24% In California

Tesla Inc., Inc.: TSLA saw a 24% drop in vehicle registration in California during the second quarter, according to data from the California New Vehicle Dealers Association (CNCDA).

This is the third consecutive quarter of declining sales in critical markets.

Key Contents

• California Registered Vehicles: Tesla’s registered vehicles fell to 52,211 during the second quarter.
• EV Market: Battery EV market fell 1.3% during the period, but hybrid vehicle sales rose 22%.
• Model Y: The market share of Tesla’s top selling model, Model Y, fell to 53.4% in the first half of this year from 64.6% a year earlier.
• Cause: Higher interest rates and increased competition are driving down demand for EVs, and consumers are moving to cheaper hybrid options.

Brand image and competition

• Brand Image: Elon Musk’s controversial comments and support for the Republican candidate have hurt Tesla’s brand image, especially in liberal-leaning California.
• Competitors: Over the same period, competitors such as Hyundai Motor, Kia, BMW, Mercedes-Benz, Ford, and Rivian saw significant increases in sales.

Headquarters relocation and additional information

• Headquarters Relocation: Tesla moved its headquarters from California to Texas in 2021, with Musk announcing this week that it will also move other businesses, including SpaceX and X.

This is due to the conflict with Gov. Gavin Newsom’s policies on transgender issues.

• Q2 Earnings Release: Tesla TSLA is set to report quarterly earnings on Tuesday, July 23.

The company delivered 443,956 vehicles in the second quarter, exceeding expectations, but still below year-over-year numbers.

8:36 AM EDT, July 19, 2024 (Benzinga Newswire)