Tesla’s California market share tumbles despite aggressive price cuts

It appears that Tesla’s market share in its key California market declined in the first quarter despite aggressive price cuts. According to Reuters calculations based on California Energy Commission data, Tesla Inc controlled 59.6% of the battery electric market in California from January to March, down from 72.7% for all of 2022. Rivals such as Volkswagen AG, General Motors Co’s Chevrolet and Kia Corp increased their market shares in California during the period, although they remained in the single digits each.

According to calculations, Tesla’s sales in California accounted for 16% of the automaker’s global deliveries last year. California is the biggest U.S. state for zero-emission vehicles. Tesla CEO Elon Musk’s pursuit of Twitter and embrace of Republicans has sparked concerns about Tesla’s brand, especially in liberal states like California. Since January, Tesla has been slashing prices in the United States, cutting prices six times in the key markets. Tesla’s shares fell nearly 10% on Thursday as a result of the price cuts, which were also implemented in China, Europe, and other countries. Tesla’s Musk said this week that sales growth would take precedence over profits in a weak economy.