tesla may be tx-based now, but it’s still a dominating force in ca

Tesla may be a TX-based electric vehicle maker today, but its previous home, California, is still one of its strongest markets. This is especially the case with the Model 3 sedan and the Model Y crossover, the company’s two best-selling electric cars.

California is the United States’ largest auto market, and it is also one of the most competitive. Tesla, whose roots lie in the state, has always performed well in California. In the first half of 2022, however, the company performed especially well. 

As noted by Phil LeBeau in a CNBC Squawk Box segment, the Tesla Model Y and Model 3 have been absolutely dominating in California in 1H22. As per data from the California New Car Dealers Association, the Tesla Model Y became the state’s number one model overall in the first half of 2022. The Model 3 stood proudly at number two. 

It should be noted that the Model Y and Model 3’s rankings are true for California’s overall auto market, not just the state’s electric vehicle segment. Tesla brand sales are up 82% as well. LeBeau noted that part of this strong performance is probably due to the company’s Fremont Factory being located in the state.

The Fremont Factory is Tesla’s first large-scale auto manufacturing facility, and while it is not as optimized as the company’s Gigafactories in Shanghai, Berlin, and Texas, it is still extremely efficient. Today, the Fremont Factory stands as the United States’ largest producing vehicle plant, with a capacity of 600,000 vehicles per year. 

Tesla’s rise in California’s overall auto market has now pushed the TX-based electric vehicle maker to second place in the state’s top auto brands by market share. Japanese automaker Toyota still holds the top spot at 17.9%, while Ford stands in third place with an 8.7% market share. Tesla, for its part, has achieved a 10.7% market share in California’s overall auto segment. 

Watch Phil LeBeau’s Squawk Box segment on Tesla’s 1H22 performance in California in the video below. 

$TSLA sales are surging in California. @Lebeaucarnews breaks down why: pic.twitter.com/owlEDi3te1

— Squawk Box (@SquawkCNBC) August 9, 2022

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