Tesla's quarterly registrations drop 15% in key California market amid Elon Musk backlash

Core Insights - Tesla's electric vehicle registrations in California dropped 15.1% in Q1, indicating significant challenges in its largest U.S. market [1][4] - Tesla's market share in California fell to 43.9% from 55.5% a year earlier, while competitors like Honda, Ford, and GM's Chevrolet increased their market presence [1][4] - Overall zero-emission vehicle sales in California rose by 7.3% during the same period, suggesting a growing market despite Tesla's decline [2] Company Performance - Tesla's global sales fell 13% in Q1, marking the lowest sales in nearly three years, attributed to rising competition and customer anticipation for a refreshed Model Y [5][8] - The Model Y, while still the best-selling EV in California, saw a sales decline of about 30% compared to the previous year [8] - Production delays due to retooling for the refreshed Model Y contributed to lost production weeks in Q1 [8] Market Dynamics - California accounts for nearly one-third of Tesla's U.S. sales, highlighting the importance of this market for the company's overall performance [7] - The California New Car Dealers Association anticipates a 2.3% decline in new vehicle registrations in the state due to U.S. trade policies [7] - Factors such as an aging product lineup and backlash against Elon Musk's political initiatives are seen as key contributors to Tesla's declining market share [4][6]