Tesla’s market share in California is falling despite aggressive price cuts

SAN FRANCISCO, April 21 (Reuters) – Tesla’s market share in the central California market fell in the first quarter of the year despite aggressive price cuts as rivals stepped up, data showed on Friday.

Tesla Inc ( TSLA.O ) controlled 59.6% of the electric battery market in California from January to March, down from 72.7% for all of 2022 and the lowest since 201[ads1]7, according to Reuters calculations based on data from the California Energy Commission.

Rivals such as Volkswagen AG ( VOWG_p.DE ), General Motors Cos ( GM.N ) Chevrolet and Kia Corp ( 000270.KS ) increased their market shares in California during the period, although they remain in single digits each.

Tesla’s sales in California accounted for 16% of the automaker’s global deliveries last year, according to Reuters calculations. California is the largest US state for zero-emission vehicles.

Tesla CEO Elon Musk’s pursuit of Twitter and embrace of Republicans has sparked concerns about Tesla’s brand, especially in liberal states like California.

Tesla has cut prices in the US since January, cutting prices six times in the key market.

The price cuts, which were also carried out in China, Europe and other countries, hit Tesla’s margins in the first quarter, pushing shares down nearly 10% on Thursday.

Musk signaled this week that the electric car maker would prioritize sales growth over profit in a weak economy.

Reporting by Hyunjoo Jin; Editing by William Mallard

Our standards: Thomson Reuters Trust Principles.