--- title: "The resurgence of hybrid demand impacts pure electric vehicle sales! Tesla loses its stronghold in California with a 24% drop in Q1 registrations" type: "News" locale: "en" url: "https://longbridge.com/en/news/283583258.md" description: "Tesla's registration volume in California decreased by 24% in the first quarter of 2023, reflecting a trend of consumers shifting towards hybrid vehicles. The share of electric vehicles among new registered vehicles in California has fallen to less than 14%, while the market share of hybrid models has risen to about 21%. Tesla's global delivery volume was 358,000 units, below market expectations, indicating that traditional automotive business remains its main source of cash amid intensified competition and policy changes" datetime: "2026-04-22T02:08:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283583258.md) - [en](https://longbridge.com/en/news/283583258.md) - [zh-HK](https://longbridge.com/zh-HK/news/283583258.md) --- # The resurgence of hybrid demand impacts pure electric vehicle sales! Tesla loses its stronghold in California with a 24% drop in Q1 registrations According to the Zhitong Finance APP, **as consumers increasingly turn to hybrid vehicles, Tesla (TSLA.US) has seen a significant decline in registrations in California, its home state, which has long ranked among the top in the U.S. for electric vehicle penetration.** According to a report released by the California New Car Dealers Association on Tuesday, Tesla's vehicle registrations in the state fell by 24% in the first quarter compared to the same period last year. This decline continues the trend of a decrease in the overall market share of electric vehicles in California—partly due to the Trump administration's reduction of subsidies for purchasing electric vehicles. Data shows that in the most recent quarter, electric vehicles accounted for less than 14% of all new registered vehicles. In contrast, according to data from Experian Automotive cited by the dealers association, the market share of gasoline-electric hybrid models has risen to about 21%. The Tesla Model Y remains the best-selling vehicle in the state (regardless of power type), followed by the Toyota Camry with a hybrid system. The significant drop in Tesla's vehicle registrations in California in the first quarter also aligns with its overall sluggish delivery performance for the quarter. Data released earlier this month showed that against the backdrop of intensified competition in the electric vehicle market and changes in the policy environment, Tesla's global deliveries in the first quarter totaled 358,000 units, below the market expectation of 372,000 units, marking the second consecutive quarter that deliveries fell short of Wall Street expectations. Although this represents a year-on-year growth of 6.3%, when excluding the low base effect from last year's Model Y production adjustments, this quarter's delivery volume is at its lowest level since mid-2022. Analysts point out that despite investors focusing more on Tesla's developments in artificial intelligence, autonomous driving, and robotics in recent years, the traditional automotive business remains the company's main source of cash flow. In the context of weakening demand for electric vehicles in the U.S., the performance of this business is particularly critical. As Tesla's largest market, the U.S. is entering a period of adjustment in electric vehicle demand. The federal purchase subsidies that previously drove sales growth have gradually phased out since September last year, leading to a shift in demand. Additionally, Trump's push to weaken electric vehicle subsidies and emission standards has prompted some automakers to ramp up their gasoline vehicle offerings, putting pressure on the electric vehicle industry. At the same time, Tesla faces fierce competition from Chinese electric vehicle manufacturers globally, as well as issues related to an aging product line. The company has previously announced plans to gradually discontinue the Model S and Model X, two of its earlier models. In terms of product planning, Tesla CEO Elon Musk stated that the company is advancing the mass production of the new two-seater model "Cybercab," which will serve the future Robotaxi business. However, this model eliminates the steering wheel and pedals, relying entirely on autonomous driving, and its market acceptance remains uncertain. **Tesla's earnings report is imminent** Tesla will disclose its latest quarterly earnings report after the market closes on Wednesday Eastern Time (Thursday morning Beijing Time). Against the backdrop of delivery volumes falling short of expectations and continued pressure on profitability, investors are particularly focused on the progress of the Robotaxi rollout, the technological iteration of the Full Self-Driving (FSD) system, and the mass production status of the Cybercab model This key information may directly affect the subsequent direction of Tesla's stock price. Analysts expect Tesla's revenue in the first quarter to be approximately $22.08 billion, a year-on-year decrease of 9%; adjusted earnings per share of $0.35; and adjusted EBITDA is expected to drop to $3.217 billion, a year-on-year decline of 14.4%. It is noteworthy that ahead of the earnings report, Tesla's stock price has already begun to warm up, rebounding nearly 15% last week, ending an eight-week streak of continuous decline. The main reasons include: the easing of tensions in the Middle East boosting market sentiment, the overall strength of the U.S. tech sector, and Tesla releasing positive signals in the field of self-developed AI chips. UBS analyst Joseph Spak pointed out: "Tesla's stock relies more on sentiment, narrative, and momentum trading rather than fundamentals." In the latest report, the analyst stated that before the release of the first-quarter earnings report, Tesla still needs to overcome multiple challenges, but this does not mean that its robot vision lacks a foundation for realization. The analyst stated: "We believe that recent concerns about weak electric vehicle demand, the energy business gap in Q1 2026, rising costs, increased capital expenditure needs, and the slow progress of robotaxi and Optimus have suppressed stock performance. However, we still expect that robotaxi and Optimus will eventually make progress and continue to believe that Tesla is one of the leaders in the field of physical artificial intelligence." ### Related Stocks - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLQ.US](https://longbridge.com/en/quote/TSLQ.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLS.US](https://longbridge.com/en/quote/TSLS.US.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [TSLZ.US](https://longbridge.com/en/quote/TSLZ.US.md) - [EXPGY.US](https://longbridge.com/en/quote/EXPGY.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [EXPN.UK](https://longbridge.com/en/quote/EXPN.UK.md) ## Related News & Research - [Tesla Q1 Earnings Are Due April 22. 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