Tesla was once the darling of California car buyers, but now it is suffering a heavy blow.
Industry data released on Thursday showed that Tesla's new car registrations in California decreased by 24% in the second quarter of this year, marking the third consecutive quarter of decline. The challenges faced by this leading electric vehicle company are becoming increasingly significant.
According to a report from the California New Car Dealers Association, Tesla's registration in California dropped to 52211 vehicles in the second quarter.
During this period, sales of pure electric vehicles in California declined by 1.3%. In contrast, sales of hybrid vehicles in the state have surged by 22%.
In the first half of this year, Tesla's registration volume in California fell by 17%, while at the same time, Tesla competitors such as Hyundai, Kia Motors, BMW, Mercedes Benz, Ford, and Rivian saw double-digit percentage growth in sales in the state.
The Tesla Model Y remains the best-selling model in California, but its market share in the first half of this year decreased from 64.6% in the same period last year to 53.4%.
The attractiveness of Tesla seems to be diminishing, indicating that this direct to consumer manufacturer may face trouble, "the report said.
California is the largest electric vehicle market in the United States and also Tesla's largest market in the country, accounting for 10% of Tesla's global deliveries.
On the one hand, high interest rates and fierce competition have weakened the demand for electric vehicles, leading consumers to choose cheaper hybrid vehicles instead.
On the other hand, Musk's personal image has also prompted potential American customers to avoid purchasing Tesla cars. Musk's support for the Republican Party and frank comments have raised concerns about the Tesla brand, especially in free states such as California.
Tesla is scheduled to announce its quarterly results next Tuesday. In the second quarter of this year, Tesla's delivery of cars to customers decreased year-on-year, but still exceeded analysts' expectations.