The Tesla Model Y was the best-selling car in California for the second quarter of 2024. However, the data shows that Tesla’s overall market share and sales have declined over the past three quarters.
According to a new report from the California New Car Dealers Association (CNCDA) released on Thursday, the Model Y continues to dominate as California’s best-selling car, with 69,810 registrations between April and June. This was enough to give the Model Y a 65.6% share of the luxury compact SUV market, far ahead of its next closest competitor, the Lexus NX, which managed to accumulate just 7,920 registrations in comparison during the same time period.
The Model Y also outpaced perennial favorites, such as the Toyota RAV4 (36,160) and Honda CR-V (25,340), all of wich are included in the light trucks category.
The Model 3 also performed well in California in the second quarter, with 21,050 registrations, coming out on top of the ‘near luxury car’ segment with a 39.5% share. That placed the Model 3 as the third best-selling passenger car in California in Q2.
Despite the positive figures for the Model Y and the Model 3, registrations for Tesla vehicles in California dropped by 17% year to date compared to 2023, and 24% compared to the same quarter last year, marking the third consecutive quarter of falling registrations for Tesla – Q2 2024 saw a 24.1% drop, following a 7.8% decline in Q1 2024 and a 9.8% dip in Q4 2023.
Tesla’s market share in the battery electric vehicle (BEV) segment also fell, with the Texas-based automaker holding 51.5% of the BEV market in Q2 2024, down from 64.6% in the same period the previous year.
Several factors are likely contributing to Tesla’s declining market share. High interest rates and inflation are making less expensive hybrid vehicles more attractive to buyers. Additionally, more EVs are gaining traction in the market. For example, the Hyundai IONIQ 5 has overtaken the Tesla Model X, becoming the third best-selling EV in California year-to-date, the CNCDA data shows.
You can read the full CNCDA Q2 2024 California Auto Outlook below.
