Latest news with #CNCDA
Yahoo
18-04-2025
- Automotive
- Yahoo
Tesla just dropped below a key threshold in America's biggest EV market
Tesla (TSLA) is no longer selling the majority of electric cars registered in the U.S.'s biggest electric vehicle market. The automaker reportedly lost significant ground in California, which accounts for almost a third of all zero-emission purchases in the country According to a publication sponsored by the California New Car Dealers Association (CNCDA), Tesla's share of the state's EV market fell to 43.9% in the first quarter of this year from 55.5% a year ago. Tesla registrations in the first quarter of 2025 fell over 15% from a year earlier — while registrations for all other EVs increased by 35%. Per the CNCDA's report, Tesla sold 43,322 vehicles in California during the first three months of the year — and it had the two top-selling EVs: the Model Y SUV and the Model 3 sedan. The Honda (HMC) Prologue, Hyundai (HYMTF) Ioniq 5, and Ford (F) Mustang Mach-E (all SUVs) rounded out the top 5. The controversial Cybertruck ranked eighth among EV sales in the state. The Model 3 remained California's best-selling 'near luxury' car. The report said that 'an aging product lineup and backlash against Elon Musk's political initiatives are likely key factors for the decline' in Tesla's market share. This is the latest hit for Tesla in a series of them. In early April, Tesla reported its worst quarterly sales in years; its 336,000 delivered units were well below Wall Street's already low expectations. Last week, the company quietly pulled options to buy its Model S and X EVs from its website in China. A lot of the company's decline has been attributed to Musk, the company's CEO, whose close ties to President Donald Trump (and role as the head of the cost-and-job-cutting Department of Government Efficiency) and other controversial comments have made the brand a target for people looking to protest governmental policies. Nonviolent, anti-Tesla protests have popped up across the globe, while vandalism against the company's vehicles and facilities has increased. The 'unprecedented' brand damage Tesla is suffering has even surprised analysts at JPMorgan Chase (JPM), who had already described the backlash against Musk as without equal in the history of the automotive industry. 'Tesla's 1Q sales and production report causes us to think that — if anything — we may have underestimated the degree of consumer reaction,' JPMorgan analysts led by Ryan Brinkman said in an early April note. The automaker wasn't able to take advantage of a recent tariff-related bump in retail sales as consumers rushed to buy big-ticket items such as cars before Trump's auto tariffs would go into effect. While Tesla's cars are built in facilities in California and Texas, the company relies on imported parts that could be hit with higher tariffs in early May. Musk spoke out about the tariffs (and went after one of their architects) when they were announced. For the latest news, Facebook, Twitter and Instagram.
USA Today
17-04-2025
- Automotive
- USA Today
Tesla's market share in California sinks amid backlash against Elon Musk
Tesla's market share in California sinks amid backlash against Elon Musk Show Caption Hide Caption Elon Musk pauses Tesla orders in China amid trade war Tesla has paused new orders for its Model S and Model X vehicles in China, following the US decision to impose 145% tariffs on Chinese imports. The move signals early fallout from President Trump's escalating trade war. unbranded - Newsworthy Californians further soured on Tesla TSLA.O in the first quarter, pulling down the electric vehicle maker's registrations by 15% as backlash against Elon Musk's company intensified in the state that has embraced EVs most across the United States. The drop-off means Tesla no longer accounts for a majority of the EV market share in the state, according to the California New Car Dealers Association (CNCDA). There have been relentless protests in many cities in California — echoing the backlash in other countries — against Musk's involvement in U.S. President Donald Trump's administration and his embrace of far-right politics in Europe, a key factor behind Tesla's 13% drop in first-quarter deliveries globally. California's embrace of EVs makes Tesla's falloff more concerning given that overall zero-emission vehicle sales in the state rose 7.3% during the first three months of the year. While Tesla's market share fell to 43.9% from 55.5% a year earlier, brands such as Honda 7267.T, Ford F.N and GM's GM.N Chevrolet grew their footprint. In case you missed it: Musk loses billions as Tesla shares get hammered "An aging product lineup and backlash against Musk's political initiatives are likely key factors for the decline in Tesla BEV market share," the CNCDA said in a statement on Wednesday. Tesla shares fell 5.2%; they have lost nearly half their value since peaking in mid-December. Investors will be closely watching Tesla's earnings release on Tuesday to see whether the company will maintain its growth forecast for the year in light of the decline in sales in key markets evidenced in the first quarter. Analysts have steadily reduced their estimates for its first-quarter results to a mean of 42 cents a share, according to data compiled by LSEG, down from 69 cents three months ago. California accounts for nearly a third of Tesla's sales in the U.S., according to Reuters calculations based on data from Cox Automotive and the CNCDA. That makes it an outsized contributor to the EV maker's success in America, as the state accounted for roughly 13% of new registrations of gasoline-powered light vehicles in 2023, according to U.S. Energy Department figures. While Tesla's Model Y SUV remained the best-selling EV in the state, its sales plummeted about 30% in the first quarter, compared with a year earlier, the CNCDA said. Tesla said earlier this month that retooling production lines for a refreshed Model Y resulted in several weeks of lost production. The CNCDA also expects total new vehicle registrations in the state to fall 2.3% in 2025 from last year due to U.S. trade policies. Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh, David Gaffen and Devika Syamnath
Globe and Mail
16-04-2025
- Automotive
- Globe and Mail
Tesla Stock (TSLA) Falls as California Sales Continue to Drop
EV maker Tesla (TSLA) saw its car registrations in California drop by 15.1% year-over-year in Q1, which was the sixth straight quarter of declines, according to Experian Automotive. This drop happened even as total new car registrations in the state went up by 8.3%. The California New Car Dealers Association (CNCDA) said that Californians are increasingly turning away from Tesla and pointed to Elon Musk's controversial public image as a possible reason. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Because of the decline, Tesla's share of the Zero Emission Vehicle (ZEV) market in California fell to 43.9% at the end of Q1, down 11.6% and now below half of all ZEV sales. This has hurt overall ZEV market momentum as ZEVs now make up just 20.8% of total car sales compared to 22% a year earlier. CNCDA Chairman Robb Hernandez said that car dealers are focused on selling what customers want, and the decline in Tesla sales shows that mandates alone won't boost EV sales if buyers are not interested. Furthermore, for all of 2025, California's total car registrations are expected to dip by 2.3% to 1.71 million. Interestingly, among all car brands, Toyota (TM) led the market with a 16.5% share, while Honda (HMC) followed with 10.8%, and Tesla came in third with 9.1%. Despite its third-place position overall, Tesla's falling numbers point to a shift in buyer preferences that make meeting the state's EV goals more difficult. Is Tesla a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 16 Buys, 11 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $305.93 per share implies 24.6% upside potential. See more TSLA analyst ratings
