Tesla Mercury CEO Elon Musk has garnered praise and criticism for his unpredictable nature.
Elon Musk’s supporters point to his enemy’s failure to launch models and the timeline of self-driving cars, while also praising his own era of electric cars.
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After spending hundreds of millions of dollars on masks in support of President Trump’s election last year, debate intensified this year, leading Doge, the executive branch organisation responsible for government efficiency or cost of reductions.
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The political movement of masks appears to be irritating many Tesla buyers as sales in key markets have been declining recently.
Given the unfortunate sales data from California, this trend appears to have not slowed, contributing to the 5% decline in Tesla’s stock price on April 16th.
Tesla’s advantages are slippery
Tesla (TSLA)) The success comes from Elon Musk, focusing on the performance of electric vehicles. Instead of making it environmentally friendly, Musk built high-performance luxury cars to compete with Mercedes-Benz, BMW and Porsche.
Musk’s performance-first strategy has transformed Teslas into an ambitious vehicle that celebrities and speed enthusiasts want, leaving competitors like Ford and General Motors in the spotlight.
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However, Tesla’s gorgeous EV moat has been heavily eroded.
Most auto companies around the world, including Detroit’s Big 3, are developing high-end EVs, many of which offer similar performance and perhaps better fit and finishes than Tesla.
The launch of so many rivals has undermined Tesla’s electric car market share, and Musk’s political position often doesn’t help reinforce major overseas markets.
According to the Chinese Passenger Automobile Association, Tesla sales in China fell 21.8% in the first quarter, while sales fell 62%, according to the KBA.
Tesla gets news of disappointed California
According to Cox Automotive/KBB, it was a struggle in the US, given Tesla’s sales volume fell 9% from the first quarter AGO levels. Electric vehicle sales rose 11% across all brands in the quarter.
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Tesla’s inactive first quarter figures fell 2024 US sales, first annual decline in more than a decade, a 2.3% decline in the fourth quarter and a 2.3% decline in the fourth quarter, according to COX/KBB.
Meanwhile, EV sales from Ford and General Motors are surged. In the first quarter, Ford saw EV sales rise 11.5%. GM’s Cadillac, GMC and Chevrolet saw an increase in EV sales of 37%, 184% and 114%.
Tesla’s fate has not improved yet, at least.
In California, which historically accounted for about a third of US EV sales, Tesla registrations hampered 15% year-on-year. Non-Tesla-zero emission vehicle registrations rose 35%, according to the California New Automobile Dealer Association (CNCDA).
It was Tesla’s sixth quarter decline in the state. According to Experian Automotive Data, total California EV registrations increased by 8%.
As a result, Tesla remains California’s largest EV company, but its market share has dropped to 43.9% from 55.5% last year.
“The aging product lineup and rebound against Elon Musk’s political initiatives are likely to be a key factor in the decline in Tesla BEV’s market share,” the CNCDA wrote.
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