Car Sales Surge Before Tariffs Raise Prices

Car Sales Surge Before Tariffs Raise Prices—But Not Teslas

BENJAMIN CREMEL/AFP via Getty ImagesPresident Donald Trump’s tariffs have led to an apparent run on vehicles as consumers try to make their purchases before the duties take effect. But one company in particular isn’t cashing in on the surge: Elon Musk’s Tesla. The electric vehicle manufacturer’s dominance in the California electric vehicle market is slipping, Business Insider reported Wednesday. Despite being the birthplace of Tesla, sales in the Golden State receded for the sixth straight quarter, with registrations down 15 percent in early 2025. The company’s downward spiral, marked by its steepest quarterly loss in over a year, comes as the state’s car market actually sees a boost ahead of anticipated tariffs, according to the California New Car Dealers Association. In the meantime, Tesla’s share in the California market dropped 55.5 percent—to 43.9 percent—between the first quarters of 2024 and 2025, according to data from CNCDA. The drop in registrations is despite the carmaker’s release of a new version of its top-selling Model Y in January. Tesla has likely been hurt by Musk’s very public embrace of right-wing politics, including his involvement with President Donald Trump’s Department of Government Efficiency (DOGE).Read it at Business InsiderRead more at The Daily Beast.

President Donald Trump’s tariffs have led to an apparent run on vehicles as consumers try to make their purchases before the duties take effect. But one company in particular isn’t cashing in on the surge: Elon Musk’s Tesla. The electric vehicle manufacturer’s dominance in the California electric vehicle market is slipping, Business Insider reported Wednesday.

Despite being the birthplace of Tesla, sales in the Golden State receded for the sixth straight quarter, with registrations down 15 percent in early 2025. The company’s downward spiral, marked by its steepest quarterly loss in over a year, comes as the state’s car market actually sees a boost ahead of anticipated tariffs, according to the California New Car Dealers Association. In the meantime, Tesla’s share in the California market dropped 55.

5 percent—to 43.9 percent—between the first quarters of 2024 and 2025, according to data from CNCDA. The drop in registrations is despite the carmaker’s release of a new version of its top-selling Model Y in January.

Tesla has likely been hurt by Musk’s very public embrace of right-wing politics, including his involvement with President Donald Trump’s Department of Government Efficiency (DOGE)..