"Anti-Musk" sentiment surged! Tesla lost ground in California: EV market share fell below 50%.

In California, the stronghold of EVs in the US, Tesla's sales have plummeted in the state as "anti-Musk" sentiment grows, losing its dominant position in the state's EV market.

California is the largest EV market in the US, accounting for over 30% of zero-emission vehicle registrations nationwide last year, making it crucial for Tesla's US sales performance. According to media calculations, California accounts for nearly one-third of Tesla's US sales.

According to the latest data released by the California New Car Dealers Association (CNCDA), Tesla's Q1 registrations in California fell 15.1% YoY, marking the sixth consecutive quarter of decline, with its EV market share in the state dropping from 55.5% to 43.9% YoY.

Considering that overall zero-emission vehicle sales in California grew 7.3% in Q1 this year, Tesla's sales decline is even more concerning.

Although Tesla's EV market share in California fell below 50%, brands such as Honda, Ford, and Chevrolet under General Motors expanded their market shares in the state.

"An aging product lineup and strong opposition to Musk's political moves may be key factors in the decline of Tesla's pure EV market share," CNCDA said in a statement on Wednesday.

CNCDA also stated that although Tesla's Model Y SUV remains the most popular EV in the state, its Q1 sales fell approximately 30% YoY.

CNCDA also expects that California's total new vehicle registrations in 2025 will decline 2.3% YoY due to US trade policies.

Recently, many cities in California have seen protests against Musk, opposing his role in the Trump administration. Musk is leading the Department of Government Efficiency (DOGE) in a sweeping reform of the US federal government, slashing federal funding and laying off federal employees on a large scale, sparking strong dissatisfaction and protests.

Musk has recently made political remarks targeting multiple countries, especially European nations, and has supported far-right parties in Europe. This has also led to a "Boycott Tesla" movement in Europe. In Q1 this year, Tesla's global deliveries fell 13%, far below Wall Street expectations.

Tesla's stock closed nearly 5% lower on Wednesday, having already plummeted by about half from its peak in mid-December last year.

Tesla will release its Q1 2025 earnings report next Tuesday (April 22). Investors will closely watch whether the company maintains its growth expectations for the year amid declining sales in its major markets in Q1.

According to data compiled by LSEG, analysts have lowered their expectations for Tesla's Q1 performance from 69¢ per share three months ago to an average of 42¢ per share.