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Tesla's Market Share In California Is Declining Despite Significant Price Cuts

Tesla's Market Share In California Is Declining Despite Significant Price Cuts
Despite significant price reduction, rivals stepped up in the first quarter of the year, causing Tesla's market share in its crucial California region to decline. According to calculations made by Reuters using information from the California Energy Commission, Tesla Inc. held 59.6% of the battery electric market in California from January to March, which is the lowest share since 2017 and a decline from 72.7% for the entire year of 2022.
Rivals including Volkswagen AG, Chevrolet from General Motors Co., and Kia Corp. all saw increases in market share in California during the time period, albeit they all still remain in the single digits.
According to a study by Reuters, Tesla's sales in California made up 16% of the automaker's global deliveries in 2017. The largest U.S. state for zero emission vehicles is California.
Elon Musk, the CEO of Tesla, has drawn criticism for his acceptance of Republicans and pursuit of Twitter, especially in liberal places like California.
Since January, Tesla has reduced pricing in the United States, six times in the major market.
Tesla's first-quarter margins were affected by the price cutbacks, which were also implemented in China, Europe, and other nations, sending its shares down by almost 10% on Thursday.
This week, Musk gave a hint that the EV manufacturer might put sales growth ahead of profit in a sluggish economy.

Christopher J. Mitchell

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