California EV sales see first decline in a decade: report

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Electric vehicle sales in California hit a snag in late 2023, dropping for the first time in more than a decade.

The Los Angeles Times reported on Thursday that Tesla sales fell significantly in the back half of 2023, declining by 10% in the final quarter alone. This sales drop came despite California’s previous pledge to ban the sale of new gas-powered vehicles in the state by 2035.

"It’s an interesting time for the automakers and consumers," said Greg Bannon, director of automotive engineering at AAA, told the LA Times. "The government and automakers have spent billions on something consumers may not want."

The report noted that this marked the first drop in Tesla Model S sales since the brand was introduced in 2012.

Tesla saw the first decline in sales for their Model S vehicle since its introduction in 2012. (AP Photo/David Zalubowski, File)

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According to the California New Car Dealers Association, sales of electric vehicles initially rose by 48% in the first half of 2023. However, sales dropped by 2,840 in the third quarter compared to the second at only 100,151. The number then plummeted another 10.2% to only 89,933 in the fourth quarter.

The Los Angeles Times cited multiple reasons for the cause of this decline including undependable public chargers, high prices, confusing government incentives and "controversial pronouncements" from Tesla CEO Elon Musk.

The report read, "There’s no survey to prove it, but there’s plenty of anecdotal evidence to suggest liberal-leaning California car buyers are done with Elon Musk’s abrasive personality and his stands on political issues. (Ask friends or neighbors who drive a Tesla.)"

The Los Angeles Times suggested that Tesla CEO Elon Musk's "controversial" statements were a factor in the decline. (Nathan Laine/Bloomberg via Getty Images)

It added, "Tesla remains a major player in California. Last year, 1 in 8 cars sold, EV or gasoline, was a Tesla. But in the fourth quarter, Tesla sales dived 10%. If enough buyers here are truly fed up enough with Musk to influence their purchasing decisions, Tesla’s sales could continue to suffer."

Fox News Digital reached out to Tesla for a comment but has yet to receive a response.

In Aug. 2022, the California Air Resources Board voted in favor of moving forward on the policy that would require all vehicles in the state to run on electricity to combat the climate "crisis" by 2035. This followed an executive order by Gov. Gavin Newsom to phase out gas-powered cars and trucks two years prior.

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California pledged to ban gas-powered cars by 2035. (Eric Thayer/Bloomberg via Getty Images)

"This is the most impactful step our state can take to fight climate change," Newsom said. "For too many decades, we have allowed cars to pollute the air that our children and families breathe. Californians shouldn’t have to worry if our cars are giving our kids asthma. Our cars shouldn’t make wildfires worse – and create more days filled with smoky air. Cars shouldn’t melt glaciers or raise sea levels threatening our cherished beaches and coastlines."

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In a comment to Fox News Digital, Newsom deputy press secretary Daniel Villaseñor said that they do not expect this drop in Tesla sales to affect that goal.

"More ZEVs were sold in California last year than at any point in history, including in Q3 when sales hit their highest share ever. Sales soared by 46% year-over-year, continuing the upward trend led by our state every year. We’re going to achieve our world-leading goal of 100% ZEV sales by 2035," Villaseñor said.