Electric vehicle giant Tesla ultimately overthrew Japanese legacy automaker Toyota as the leading automotive brand in California in Q2 2023, Tesla North reported.
However, Bloomberg suggests this significant advancement does not just focus on brand competition. It apparently signals a wider national trend in the state’s auto industry.
EV adoption in California
California’s electric vehicle registrations reportedly grew from just 2% of new vehicle sales to a remarkable 22% over the past ten years.
The rapid growth of EVs in the state intensified after achieving a market share of 5%, which ultimately shifted customer perception of the transportation sector.
According to the report, the Golden State would only trail behind key countries China, the US, and Germany in the global rankings if it were considered its own nation.
In fact, California’s EV sales surged 70% from the same quarter last year. As expected, the significant growth is primarily due to Tesla’s strong presence in the state.
Remarkably, the Musk-led company controls a whopping 60% of the EV market in the entire US. It is unsurprising, considering Tesla’s aggressive pricing strategy, constant upgrades, and competitive profit margins, among others.
EVs as the future
Electric vehicle inventories continue to rise in the lots of dealerships in the US. However, the latest Cox Automotive Survey assures that this growth in inventory does not imply weakening demand.
According to the findings, 50% of US buyers see EVs as the future, so their expectations for the technology are also increasing.
Customers now seek an affordable EV model with a more competitive driving range than traditional vehicles.
See Also:
- California withdraws EV rebates to focus on low-income customers
- VW previews plug-in hybrid California concept camper
- California reports record volume in electric vehicle sales
- Tesla looking for $100M government funding to develop semi-charging route from Texas to California
- Tesla successfully overthrew Toyota in California in Q2 2023
All that said, California’s remarkable growth in electric vehicle adoption demonstrates its position as a trendsetter. Its significant edge in the EV shift is largely driven by Tesla’s Model 3 and Y. Now, the state has more potential to expand its EV industry with the aid of the Inflation Reduction Act’s federal tax credits for clean energy vehicles.
