Electric vehicle leader Tesla Inc (NASDAQ:TSLA) has been a market share leader in the EV space in many territories over the years, including the state of California. Here’s a look at how Tesla isn’t just winning the EV market in California, but winning the overall automotive sector market as well.
What Happened: Tesla had the two best-selling vehicles in the state of California in the first half of 2022 according to CleanTechnica. Here’s how Tesla stacked up to the competition.
- Tesla Model Y: 42,320
- Tesla Model 3: 38,993
- Toyota Rav4: 31,599
- Toyota Camry: 28,745
- Toyota Corolla: 22,391
- Chevrolet Silverado: 20,349
- Ford F-Series: 18,598
- Honda Accord: 18,384
- Honda Civic: 18,502
- Toyota Tacoma: 17,777
For the first six months of the year, Tesla had the two top-selling vehicles in the state of California across all model classes, beating out several vehicles from Toyota Motors (NYSE:TM) for the crown.
Tesla had the top car in the state by units sold in the first half of the year and also the top SUV/truck, leading both categories. The Tesla Model 3 had a lead of over 10,000 units in the car category over the Toyota Camry. In smaller niche segments like luxury compact SUV, Tesla had even more dominant leads, selling almost 5x more than the Mercedes GLC Class.
Here were the top-selling automotive brands in California in the first half of 2022 by units sold:
- Toyota:152,838
- Tesla: 90,895
- Ford Motor Company (NYSE:F): 74,146
- Honda Motor Company (NYSE:HMC): 72,990
- Chevrolet, a General Motors (NYSE:GM) unit: 53,226
Tesla ranked as the second-largest seller of automotives in California in the first half of 2022, outpacing Ford and General Motors. The feat comes as the company focuses on two primary models and other manufacturers have lineups in the double digits.
Related Link: Tesla Made More In Profit Than GM In Q2 Despite Selling Fewer Vehicles
Why It’s Important: Tesla had a market share of 10.7% in California in the first half of the year, a significant increase from the 3.3% it had in 2021.
Tesla CEO Elon Musk once had a long-term goal of having 10% of global auto sales for Tesla, a feat accomplished in the state in which the company was formerly headquartered.
In terms of market share for the entire U.S. automotive market, Tesla still has room to grow with 3.3% share according to the report. Toyota leads the U.S. at 13.4% market share, followed by Ford at 12.7% and Chevrolet at 10.6%.
The Tesla Model 3 was the ninth bestselling vehicle in the U.S. in 2021. The Model Y ranked 19th in unit sales in 2021. The data from California may validate estimates that Tesla could have two of the top-selling vehicle models in 2022 nationwide, and could see an entry into the top five by units sold.
The state of California is the largest by population in the U.S. and also a market leader in electric vehicles. Battery powered electric vehicles made up 15% of new auto sales in California in the first half of 2022.
California is in the process of banning sales of new gas powered vehicles by 2035, a move that could increase the number of electric vehicles like those from Tesla in the state going forward. Some of the most populous states in the country operate under the rules of the California Air Resources Board and could look to copy the move by California.
The state of California is only a portion of the U.S. but with its large population, at one point in 2020 represented one in every 10 new automobiles sold. The dominance by Tesla in the state could continue to show the bull case for the electric vehicle company going forward as it introduces new vehicle models and enters new segments like the pickup truck and semi.
TSLA Price Action: Tesla shares closed 2.5% lower on Tuesday to $277.70.
