By Akash Sriram
(Reuters) -clifornians hates further on Tesla in the first quarter, pulling down electric vehicle manufacturer registrations 15% as backlash against Elon Musk's company intensifies in the state that has embraced EVS largest across the United States.
The drop means that Tesla no longer accounts for a majority of EV market share in the state, according to the California New Car Dealer Association (CNCDA).
There have been non -party protests in many cities in California -echoing the backlash in other countries -against Musk's participation in the administration of US President Donald Trump and his embrace of right -wing politics in Europe, a key factor behind a 13% Tesla reduction in first -quarter deliveries.
California's embrace of EVS makes Tesla's fall more concerned given that zero emission vehicle sales in the state have risen 7.3% in the first three months of the year. While Tesla's market share fell to 43.9% from 55.5% a year earlier, brands like Honda, Ford and Chevrolet GM grew up.
“An aging and backlash product lineup against Musk's political enterprises is likely to be key factors for the decline in the Tesla Bev market share,” the NRWDA said in a statement on Wednesday.
Tesla shares decreased by 5.2%; They have lost nearly half their value since reaching the peak of mid -December.
Investors will be watching closely releasing Tesla's earnings on Tuesday to see if the company will maintain its growth forecast for the year in light of the decline in sales in key markets seen in the first quarter. Analysts have gradually reduced their estimates for its first -quarter results to a mean of 42 cents per share, according to data compiled by LSEG, down from 69 cents three months ago.
California accounts for nearly a third of Tesla sales in the US, according to data -based Reuters calculations from Cox Automotive and the CNCDA. That makes it an external contributor to the success of an EV manufacturer in America, as the state accounts for about 13% of new light vehicle registrations powered by gasoline in 2023, according to US Energy Department figures.
While the Tesla SUV model remained the best EV that sold in the state, its sales plunged about 30% in the first quarter, compared to a year earlier, the CNCDA said.
Tesla said earlier this month that re -locating production lines for the newly renovated model led to several weeks of lost production.
The CNCDA also expects total new vehicle registrations in the state to fall by 2.3% in 2025 from last year due to US trade policies.
(Rported and Srirah Akaruau in Bengaluur; Edit.