For the first time since the company took the electric vehicle market by storm, Tesla is losing sales to its competitor Rivian.
As Elon Musk continues to lambast California state officials over laws and regulations that he disagrees with, his company appears to be losing favour with his valuable customer base in the state.
Tesla Sales Plummet
New information has been revealed that shows just how much Tesla sales have slowed down in the Golden State.
Sales have decreased by 24% to 52,211 vehicles in the second quarter of the year. This decline marks Tesla’s third consecutive three-month period of declines compared to 2023.
EV Sales Are Up Overall
There has been a lot of talk recently about lagging electric vehicle (EV) sales and dissatisfied customers. However, this isn’t necessarily true.
Electric cars have only recently become affordable and easily accessible to the average consumer. In the first few years, sales shot up, and now that millions have been sold, the numbers have levelled off slightly. But this doesn’t mean that the industry isn’t growing at a healthy rate.
Tesla Competitors Are Heating Up
One of Tesla’s major competitors on the market for luxury electric cars is Rivian, an American owned company that manufactures its vehicles in Illinois. Sales have risen 69% this quarter with 3,725 vehicles.
The sleek and stylish trucks and SUVs with rugged capabilities took the market by storm and the brand is now the fastest-growing company in California.
Early Tesla Fans Are Turned off by Musk
There can be several pros and cons for a company that has an outspoken CEO. In the case with Tesla, people either love or hate Elon Musks’s declarations of conspiracy theories, distrust of the California government, and support of controversial political leaders.
Many people remark that an eccentric personality is allowed to come along with genius, but many people are turning away entirely from supporting him and his business ventures.
Popular Tesla Blogger Ditching Her Ride
A well-known Tesla owner who goes by @MissJilianne on X, lives in Malibu and posts about her Tesla frequently was tapped to blog about the company’s Full-Self Driving beta tests on her social media accounts.
She posted that after Musk publicly endorsed Donald J. Trump and pledged millions to a Republican pac, she was thinking of swapping her Tesla for a Rivian.
EVs Are Still Selling in California
California has been a cornerstone of Tesla’s business model since its inception. Both founded and based there, the state has fuelled the majority of the sales, making up 21.4% of the state’s EV sales, which is three times the U.S. average of 7.5% in 2023.
Across all car brands sold in the state, six out of ten were Tesla cars.
Elon’s Gripes With California
In 2021, Musk vowed to move Tesla headquarters from California to Texas as he disagreed with the Covid-19 requirements in the state.
Since then, he has moved his personal residence to the Lone Star state as has pledged to also move his other companies X (formerly Twitter) and SpaceX.
The Final Straw
Recently on X, Musk posted that his “final straw” with California is a new law in the state meant to protect trans kids in schools.
Bill AB1955 prohibits teachers from discussing a child’s sexual or gender identity with their parents – a move that California law makers have taken to keep kids’ information private in case of retaliation at home.
Not Doing His Business Any Favors
At first, it was assumed that the California residents buying Tesla’s were generally left-leaning techies who wanted to bring in a new era of clean driving cars.
Over time, Musk has shared more of his political views which simultaneously alienated his initial fan base and drew in more conservative oil-loving constituents. It seems that his main gripes with California and Gavin Newsom are his progressive and left leaning policies.
Advertising on Twitter
Another move that will most likely not help the tech mogul is his big move to advertise the Cyber truck and new Tesla models on social media platform X (formerly Twitter).
Musk purchased the platform in 2022 for $44 million and immediately made some drastic changes to draw in a more conservative base that values speaking freely without repercussions and banning well-known journalists. Now, his initial left-leaning customer base has left the platform for greener pastures.
Competition Breeds Innovation
As a self proclaimed capitalist and entrepreneur, Musk is known for the saying that “competition breeds innovation.”
While his brand Tesla might have started the luxury electric vehicle market, new brands have taken notes on what to do and what not to do and are currently growing their brands in a profitable industry.
