Did Tesla, influenced by 'Trump buddy' Musk, underperform in California?

New EV Sales Drop by 11.6%
Market Share Falls by 7.5 Percentage Points
Support for Trump and Right-Wing Leanings
Elon Musk Loses Favor with Progressive California

In California, the largest electric vehicle (EV) market in the United States, Tesla's new EV sales decreased by 11.6% last year. The photo shows Tesla's popular EV model, the 'Model Y'.

In California, the largest electric vehicle (EV) market in the United States, Tesla's new EV sales declined by 11.6% last year. Analysts suggest that Elon Musk, Tesla's CEO, lost public support within progressive-leaning California after openly endorsing President Donald Trump and revealing right-wing tendencies.

According to the 2024 new EV statistics released on the 3rd (local time) by the California New Car Dealers Association, Tesla's new car registrations dropped from 230,010 units in 2023 to 203,221 units in 2024, a decrease of 11.6%. This figure combines zero-emission vehicles (ZEV) and plug-in hybrid electric vehicles (PHEV), while the overall market grew by 1.2% year-over-year to 387,368 units in 2024.

During the same period, Tesla's EV market share also fell from 60.1% in 2023 to 52.5% in 2024, a decline of 7.5 percentage points. By individual model, the popular Model Y performed relatively well, but the new Model 3 plummeted by 36%. The Cybertruck, which received both criticism and curiosity for its futuristic design, also underperformed compared to expectations.

Bloomberg reported, "While typical business factors such as the early refresh of the Model 3 also played a role, CEO Musk's active political stance in the U.S. presidential election likely had a negative impact on sales in California." Reuters also assessed, "Musk's involvement in the U.S. presidential election appears to have further worsened the sales decline."

California, which implements the most aggressive EV subsidy policies in the U.S., accounted for 35% of the country's EV market share as of the end of 2023. Tesla also benefited from these policies, achieving significant growth. Bloomberg noted, "California Governor Gavin Newsom warned that if President Trump eliminates federal tax credits for consumers, Tesla could be excluded from California's EV subsidy program."

Musk and Governor Newsom have also clashed over political beliefs. In July last year, Musk announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. This move was in response to Newsom passing a law that prohibits teachers from informing parents about changes in a student's gender identity.

Meanwhile, South Korean automaker Hyundai saw its new EV registrations in California rise by 34.0% to 22,718 units in 2024 compared to the previous year. During the same period, Kia's registrations increased by 74.1% to 13,943 units. Market shares also grew, with Hyundai increasing from 4.4% to 5.9% and Kia from 2.1% to 3.6%, each gaining 1.5 percentage points.

This content was produced with the assistance of AI translation services.