Registrations of Tesla[1] vehicles in California, by far the largest market of the luxury electric car maker, fell 24 percent in April from a year ago, according to data from IHS Markit. The findings come as investors worry that demand for Tesla's luxury Model S sedan is waning ahead of the mass market Model 3 launch.
Tesla earlier this week reported first-half global deliveries[2] of its Model S and its Model X SUV at the low end of its own forecast, driving down the stock and raising questions about demand for the older models.
Tesla's share price more than doubled between early December and late June as investors bet on Chief Executive Elon Musk's[3] strategy to transform the low-volume luxury electric car maker into a diversified producer of mass market vehicles, storage batteries, electric commercial trucks and rooftop solar panels. The company's market value rose past larger rivals General Motors and Ford Motor.
Tesla Model S Falls Short in Crash Test Yet Again[4]
Since June 23, however, Tesla shares have fallen by nearly 20 percent amid concerns that demand for the company's existing models is weakening.
Overall sales of electric vehicles in the United States remain stuck at less than 1 percent of total vehicle sales, despite a growing number of models fielded by Tesla and other car makers.
Tesla declined to comment on California registration figures and noted that second-quarter global deliveries rose 53 percent from a year earlier, to just over 12,000 Model S and just over 10,000 Model X. It said earlier this week that battery pack production problems held back vehicle output in the second quarter until early June.
California, a haven for environmentalists and techies, is...