Hybrid demand resurgence impacts pure electric sales! Tesla, Inc. (TSLA.US) loses ground in California headquarters, Q1 registrations plummet by 24%

As more and more consumers turn to hybrid cars, the registration of Tesla, Inc. (TSLA.US) in California, its headquarters and a state with one of the highest electric vehicle penetration rates in the United States, has seen a significant decline. According to a report released by the California New Car Dealers Association on Tuesday, Tesla, Inc.'s vehicle registration in the state decreased by 24% compared to the same period last year in the first quarter of this year. This downward trend continues the overall decline in market share of electric vehicles in California - partly due to the Trump administration's reduction in subsidies for purchasing electric cars. The data shows that in the most recent quarter, electric vehicles accounted for less than 14% of all new registered vehicles. In comparison, according to data cited by the dealer association from Experian Automotive, the market share of gasoline-electric hybrid models has risen to about 21%. The Tesla, Inc. Model Y remains the best-selling model in the state (regardless of power type), followed by the Toyota Camry with a hybrid power system. The significant decrease in vehicle registration of Tesla, Inc. in the first quarter in California also aligns with the underwhelming performance of its overall delivery volume for the quarter. Data released earlier this month showed that against the backdrop of intensifying competition in the electric car market and changing policy environment, Tesla, Inc. delivered a total of 358,000 vehicles globally in the first quarter, lower than the market's expectation of 372,000 vehicles. This is also the second consecutive quarter where delivery volume did not meet Wall Street's expectations. Although it still grew by 6.3% year-on-year, excluding the low base effect from the production adjustment of Model Y last year, the delivery volume this quarter is the lowest since mid-2022. Analysts point out that despite investors' increasing focus on Tesla, Inc.'s activities in the fields of artificial intelligence, autonomous driving, and Siasun Robot & Automation, the traditional car business remains the company's main source of revenue. Against the backdrop of weakening demand for electric cars in the United States, the performance of this business is especially critical. As Tesla, Inc.'s largest market, the United States is entering a period of adjustment in demand for electric cars. The federal car purchase subsidies that previously drove sales growth were gradually phased out in September last year, leading to a shift in demand. In addition, Trump's push to weaken subsidies for electric cars and emission standards has prompted some car companies to once again focus on gasoline vehicles, putting pressure on the electric car industry. Meanwhile, Tesla, Inc. also faces fierce competition from Chinese electric car manufacturers and issues with its aging product line on a global scale. The company has previously announced that it will gradually halt production of the earlier models, Model S and Model X. In terms of product planning, Tesla, Inc. CEO Musk has stated that the company is advancing the production of a new two-seater model called "Cybercab," which will serve its future Robotaxi business. However, given that the model will eliminate the steering wheel and pedals and rely entirely on autonomous driving, its market acceptance still remains uncertain. Tesla, Inc.'s financial report is imminent Tesla, Inc. is set to disclose its latest quarterly financial report after market close on Wednesday, Eastern Time (early Thursday morning in Beijing). Amid lower-than-expected car delivery volumes and continued pressure on profits, investors are particularly interested in the progress of the Robotaxi driverless taxi service, the technological iteration of the fully autonomous driving system FSD, and the production status of the Cybercab model. These key pieces of information may directly impact the future direction of Tesla, Inc.'s stock price. Analysts estimate that Tesla, Inc.'s revenue for the first quarter will be around $22.08 billion, a 9% year-on-year decrease; adjusted earnings per share are expected to be $0.35; and adjusted EBITDA is forecasted to decrease to $3.217 billion, down 14.4% compared to the previous year. It is worth noting that ahead of the financial report disclosure, Tesla, Inc.'s stock price has already experienced a rebound, with a cumulative increase of nearly 15% last week, ending an eight-week streak of continuous declines. The main reasons include the easing of tensions in the Middle East boosting market sentiment, overall strength in the U.S. tech sector, and positive signals from Tesla, Inc. in the field of self-developed AI chips. UBS Group AG analyst Joseph Spak pointed out, "Tesla, Inc.'s stock is more dependent on sentiment, narrative, and momentum trading rather than fundamentals." In a recent report, the analyst stated that Tesla, Inc. still faces multiple challenges before disclosing its first quarter financial report, but this does not mean that its Siasun Robot & Automation vision lacks a solid foundation. The analyst stated, "We believe recent concerns about soft demand for electric cars, energy business gaps in the first quarter of 2026, rising costs, increased capital expenditure requirements, and concerns about the slow progress of robotaxi and Optimus have suppressed stock performance. However, we still expect progress in robotaxi and Optimus, and continue to believe that Tesla, Inc. is one of the leaders in the field of physical artificial intelligence."