Tesla’s (TSLA) electric vehicle registrations in California declined by about 12% last year, according to industry data. This downward trend is attributed to various factors, such as high interest rates, increased competition, and the introduction of a redesigned Model 3 sedan. Additionally, CEO Elon Musk’s involvement in the U.S. election may have also contributed to the decline since California is a very liberal state that tends to oppose Trump.
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Despite this decline, Tesla’s Model Y crossover remained the top-selling vehicle in California, with around 129,000 units sold last year. The Model 3 sedan came in second, with approximately 53,000 cars delivered. However, sales of the Model 3 fell by about 36% from the previous year.
Tesla’s global deliveries also experienced a decline last year due to high borrowing costs and increased competition from Chinese and European automakers. Furthermore, the company may face additional challenges if the Trump administration scraps the federal tax credit for EV purchases. In response, California is considering introducing state tax credits, but Tesla’s EVs may not qualify for these incentives.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 112% rally in its share price over the past year, the average TSLA price target of $338.85 per share implies 11.8% downside risk.
