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Tesla California Registrations Drop In Q1 Driven By Low Model 3 Demand

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Tesla California Registrations Drop In Q1 Driven By Low Model 3 Demand

Tesla Inc. (NASDAQ: TSLA) vehicle registrations in California fell slightly in the first quarter on a year-over-year basis, largely reflecting a slump in Model 3 registrations, according to data from research firm Cross-Sell.

What Happened: Tesla registrations in California — the largest market in the U.S. for the electric car maker — declined to about 21,520 vehicles from about 22,117 vehicles in the preceding fourth quarter, Cross-Sell data shows, as reported by Reuters on Tuesday.

California registrations in the first quarter for Tesla's Model 3 mass-market sedan was 8,060, a yearly decline of 54%. The Model Y compact crossover utility vehicle saw 12,227 registrations in Q1.

Total first-quarter vehicle registrations in the 22 states where data was collected, amounted to 44,502, with Model Y accounting for more than half of the registrations, as per Reuters.

See Also: Tesla China Registrations Tripled YoY In March, Doubled Sequentially: CAIN Data

Why It Matters: Tesla delivered 184,800 vehicles in the first quarter, handily beating the 168,000 number expected by analysts. The figures reflected strong reception of the Model Y in China. The Elon Musk-led company also noted that the new Model S and Model X were “exceptionally well received.”

Wedbush said last month that despite chip shortage facing automakers, Tesla saw strength in China and the U.S. "with EV consumer demand patterns that continued to improve discernibly."

Analysts expect the Model Y to boost Tesla’s sales in China, the company’s second-largest market. The SUV went on sale in China at the beginning of 2021 and garnered enough orders to exhaust supplies for the first three months of the year.

Price Action: Tesla shares closed 0.6% higher on Tuesday at $718.99, but declined 0.8% in the after-hours session to $713.00.

Read Next: Texas Police, Unconvinced By Elon Musk's Claim, To Serve Search Warrants On Tesla Today: Report

Click here to check out Benzinga's EV Hub for the latest electric vehicles news

Photo: Courtesy of Tesla

 

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