Tesla, Inc. (NASDAQ: TSLA) is surging ahead in California, which is the biggest car market in the country.
Tesla’s new vehicle market share in California stood at 13.6% in the year-to-period, according to data released by the California New Car Dealers Association. This exceeded Toyota Motor Corp.’s (NYSE:TM) share of 12% in the second quarter in 2023.
For decade, Honda and Toyota have dominated the California market where the cost of gas is currently the highest in the country.
Statistics for nationwide market share showed Ford Motor Co. (NYSE:F) snagging a 12.2% share compared to Toyota’s 12% and General Motors Corp. (NYSE:GM)-owned Chevrolet brand’s 11.1% share. Tesla’s nationwide market share was way below: 4.3%.
In absolute numbers, registrations for Toyota brand vehicles were at 133,375 units compared to Tesla’s 123,482 units. While Toyota’s market share fell 2.9 points, Tesla’s rose by 2.5 points.
Tesla’s Model Y is the bestseller in California among all categories, with registrations of 74,765 units, followed by the Model 3 at 41,718 units.
The Honda Civic remains the best-selling gas car in California as the Toyota Camry was a distant third with registrations of 27,169 units.
Toyota is currently selling the BZ4x as its only EV as they have yet to electrify their vehicle lineup. The Japanese manufacturer had moved some of their prominent models that includes the Sienna, Tacoma, Tundra, and the Crown as either an option and/or hybrid only models.
The Tesla Cybertruck will go into production in 2024 as the design has been the most talked about among consumers.
Tesla’s strong performance in California suggests the robust uptake of electric vehicles in the state. As Governor Gavin Newsom seeks a reduction in greenhouse gas emissions and to end climate change, the California Air Resources Board issued a mandate banning the use of fossil fuels in all vehicles sold in the state beginning in 2035.
Tesla’s dominance, therefore, does not come as a surprise as the rest of the startup EV companies are having difficulty ramping-up production and selling affordable and at the same time compelling vehicles.
Due to the new state laws where California will outlaw the selling of gas powered cars, Tesla is expected to face competition from other brands that include GM where they will be selling the incoming EV models that includes the Silverado, Equinox, and the Blazer.
Produced in association with Benzinga
Edited by Alberto Arellano and Newsdesk Manager
