-Tesla’s Q1 registrations down 15.1% YoY in California
-Tesla’s EV market share fell 11.6 percentage points
-Hyundai (+30.5%), Kia (+25.7%), Genesis (+45.1%) posted strong sales growth
-Hyundai (+35.0%) and Genesis (+39.1%) gained EV market share
Opinion
Tesla’s sustained weakness reflects a combination of political risks and brand deterioration, while emerging EV rivals are rapidly gaining traction. The erosion appears structural, not cyclical—suggesting it may be difficult for Tesla to reverse with simple price cuts or marketing efforts.
Core Sell Point
With shrinking market share and deepening political headwinds in a critical region like California, Tesla faces mounting structural pressure on both future sales and stock performance.
Tesla’s struggles in California continue, with first-quarter registrations down 15.1% year-over-year, according to the California New Car Dealers Association (CNCDA). Tesla registered 42,322 vehicles in the quarter, marking its sixth consecutive quarter of declining sales. Meanwhile, its EV market share plunged from 55.5% to 43.9%.
In contrast, Hyundai, Kia, and Genesis all posted sales growth exceeding 30%. Hyundai and Kia each gained 0.7 percentage points in overall market share, while Genesis gained 0.2 percentage points. In the EV segment specifically, Hyundai grew 35.0% and Genesis surged 39.1%, capturing part of Tesla’s lost ground.
CNCDA attributed Tesla’s decline not only to increasing competition but also to growing political backlash against Elon Musk in Democratic-leaning California. In addition, rising tariffs and trade policy uncertainty have further clouded the outlook for the state’s new car market—suggesting Tesla’s downward trend may persist without a near-term recovery.
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