Tesla Inc. (NASDAQ:TSLA) came on top in California during the first half of the year, according to the California Auto Outlook report sponsored by the California New Car Dealers Association. California has the biggest auto market in the U.S.
Tesla’s Model Y, Model 3 Top-Selling Brands: The Elon Musk-led company’s Model Y SUV clocked in sales of 42,320 units in California, going by new light vehicle registration data for the first half of the year. The SUV took the top spot in volume sales.
The Model 3 sedan's new vehicle registrations were at 38,993 units, occupying the second position. Toyota Motor Corp.’s (NYSE:TM) RAV4 registrations stood at 31,599 units, while sales of Toyota Camry and Toyota Corolla came in at 28,745 units and 22,391 units, respectively.
Sales during the first half of the year were impacted by vehicle production and availability. The report stated that new registrations of Honda Motor Co. Ltd. (NYSE:HMC) Civic and Toyota Camry, the perennial top sellers in the Golden State, were impacted by lean inventory levels.
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Registrations declined for most brands, except Tesla and Genesis, the luxury vehicle division of South Korean automaker Hyundai Motor Company GDR (OTC:HYMTF). These two brands saw 82.2% and 53% year-over-year increases, respectively.
Toyota was the market leading brand in the state followed by Ford Motor Company (NYSE:F), Tesla and General Motors Company’s (NYSE:GM) Chevrolet.
California Outdoes Nationwide Performance: New light vehicle registrations in California declined 17.9% in the first half of the year compared to a year ago, the report said. This was slightly better than the 18.3% decline in the total U.S. light vehicle registrations.
The Outlook: As lean supplies continue to haunt California, new vehicle registrations in the state are expected to drop to 1.8 million units in 2022, a 3.2 percent decline from 2021. The report also flagged softening demand in the coming months due to slower economic growth and weakening consumer affordability. A sharp drop, however, isn’t likely, it added.
“Inventory shortages have already pushed sales to low levels and accumulating pent-up demand will provide a boost when supplies improve,” the report said.
TSLA Price Action: Tesla shares are up 2.70% at $872.97 on Wednesday at publication, according to Benzinga Pro data.
Photo: Model Y, courtesy Tesla Inc.
