Electric vehicle (EV) registrations in California saw a modest 2% increase in the third quarter of 2023 compared to the same period last year. However, industry leader Tesla experienced a 3.5% decline in sales during this time, according to the latest report from the California New Car Dealers Association.
Despite the dip, Tesla still dominates the California EV market, accounting for over half of the 102,044 electric vehicles sold or leased in the state during the quarter. The company moved 57,587 vehicles, maintaining its position as the top-selling EV maker in the region.
This marks Tesla's third consecutive quarterly decline in California, following drops of 7.8% and 17% in the first and second quarters, respectively. Year-to-date, Tesla's sales and leases in the state have fallen by 12.6%.
The decline in Tesla's California sales contrasts with its global performance, where the company saw a 6.4% increase in the third quarter, buoyed by the introduction of the new Cybertruck.
Industry analysts attribute Tesla's California sales slump to several factors, including increased competition from other automakers introducing new, more affordable EV models. Additionally, some suggest that CEO Elon Musk's public support for Republican presidential candidate Donald Trump may be affecting sales in the predominantly left-leaning state.
While Tesla faces challenges, other EV makers are gaining ground. Kia and Hyundai, both offering more affordable EV options, saw significant year-to-date increases of 64% and 30.5%, respectively. Ford also posted a 17.3% jump in California EV sales and leases.
The overall EV market in California continues to grow, albeit at a slower pace than in recent years. The market share for battery electric and plug-in hybrid vehicles has reached 25.6% for the first nine months of 2023, up slightly from 24.9% in 2022.
As California aims to meet Governor Gavin Newsom's mandate of 35% EV and plug-in hybrid sales by 2026, industry observers remain cautiously optimistic about the market's trajectory. However, challenges such as higher vehicle costs, range anxiety, and the need for improved public charging infrastructure continue to impact consumer adoption rates.
The evolving landscape of California's EV market underscores the dynamic nature of the industry, with established players facing new competition and changing consumer preferences shaping the future of electric mobility in the state.