Electric vehicle giant Tesla Inc. has experienced a significant decline in vehicle registrations in California, with a total of 203,221 registrations in 2024. This represents a nearly 12% decrease from the previous year.
Key Findings
- Tesla’s new registrations fell by 7.8% in the fourth quarter and 11.6% in 2024.
- The company held a 52.5% share of the zero-emission vehicle market in 2024, down from 60.1% in 2023.
- The Tesla Model Y SUV was the best-selling battery electric vehicle in California last year, with 128,923 registrations.
- The Model 3 sedan was the second best-selling BEV, with 53,056 registrations.
Impact on Tesla
The decline in registrations in California is consistent with Tesla’s overall performance in 2024. The company reported a fall in vehicle deliveries for the first time in over a decade, with global deliveries of 1.79 million vehicles. This decrease can be attributed to various factors, including the high interest rate environment and the company’s efforts to ramp up production of its refreshed Model 3 vehicle.
Possible Reasons for the Decline
Several factors may have contributed to the decline in Tesla’s registrations in California, including:
- Increased competition in the electric vehicle market
- High interest rates affecting consumer demand
- Potential backlash against Tesla CEO Elon Musk’s affiliation with Republican President Donald Trump in the democratic state
Conclusion
The decline in Tesla’s registrations in California is a significant trend that may have implications for the company’s future performance. As the electric vehicle market continues to evolve, Tesla will need to adapt to changing consumer demands and preferences to remain competitive.