In the first quarter of 2023, Tesla's market share in California experienced a significant decline despite its aggressive price cuts, as rivals like Volkswagen AG, General Motors Co's Chevrolet and Kia Corp increased their market shares. From January to March, Tesla controlled 59.6% of the battery electric market in California, down from 72.7% for all of 2022, and the lowest since 2017. Even though the competitors' market shares increased, they still remained in the single digits.
California is the largest state in the US for zero-emission vehicles, and Tesla's sales in the region accounted for 16% of the automaker's global deliveries last year. However, concerns have been raised about Tesla's brand due to CEO Elon Musk's of Twitter and association with Republicans, especially in liberal states like California.
To counter the decline in market share, Tesla has been continuously slashing prices in the US since January, cutting prices six times in the key market. However, this has had a negative impact on Tesla's margins in the first quarter, leading to a 10% decline in its shares on Thursday.
Musk has indicated that Tesla would prioritize sales growth over profit in a weak economy. It remains to be seen whether Tesla's strategy of aggressive pricing and prioritizing sales growth will help it regain its lost market share in California and other key markets.
Social Plugin