California
As Tesla CEO Elon Musk continues to bash California and stump for Trump, West Coasters are getting revenge
The battery that once powered a great love between Tesla CEO Elon Musk and California car buyers is slowly fading away.
New registrations of the Tesla Model Y in the Golden State have tumbled for a full year, with its market share dropping 8.5% compared to last year, according to Experian Automotive data. The California New Car Dealers Association third quarter outlook report published on Friday reveals the electric vehicle maker’s dominance in the country’s largest market for battery-electric vehicles (BEVs) has continued to erode. Among the top three passenger cars sold in California, the Tesla Model 3 has fallen to third place, behind the Honda Civic and the Toyota Camry, potentially opening the door for a full-throttle free-for-all among automotive brands.
Overall, Tesla’s brand share fell from from 13.6% to 12.1%, year-to-date. Being outsold by non-luxury brands such as Honda and Camry is a blinking-red signal shift in the overall competitive landscape. The Model 3 catapulted Tesla onto the main stage as a mass-market brand, but it now faces new cast of rivals including Cadillac, Lexus, Hyundai, and BMW, all of which made major gains in the past year. Cadillac, for instance, clocked a 315.2% increase in BEV registrations, while Tesla sunk from 63% to 54.5%.
There may also be rising tension in the market due to California’s strong Democratic-leaning population, which is more likely to buy an EV, and Musk’s support for Trump. The CNCDA outlook report, which tracks trends in California’s new vehicle market, comes as the electric vehicle CEO has continually praised Republican Presidential nominee Donald Trump. The share of registered Democrats in California has risen to 45.3% since 2020, while Republican registration has remained flat at about 23.9%, according to the Public Policy Institute of California. Meanwhile, a 2020 study found U.S. democrats are significantly more willing to adopt EVs than Republicans. And California’s share of the BEV market year-to-date is 22.2%, compared to an overall U.S. market share of 7.9%, CNCDA reported.
Plus, Musk hasn’t been kind to California. He publicly pledged to move SpaceX, and X out of the state and into Texas this year. The “final straw” came after Gov. Gavin Newsom signed into law the Support Academic Futures and Educators for Today’s Youth (SAFETY) Act, aimed at prohibiting the forced outing policies of students in schools. Musk said it was tantamount to an attack on families and companies.
It might not hurt that Democratic Presidential nominee Kamala Harris is a California native. The Vice President lives in Washington, D.C., but she and husband Doug Emhoff own a $5 million mansion in Brentwood, Calif.
Brian Maas, president of the CNCDA, told Fortune there are likely several factors underlying the trend.
“We believe the slip for Tesla could be happening for a number of reasons, starting with market saturation,” said Maas in a statement. “Californians who wanted and could afford Teslas have mostly already done so.”
Plus, Tesla hasn’t rolled out new accessible models, apart from the “very niche and expensive Cybertruck,” he added. There are also now more options from traditional car manufacturers. “And this is all before we bring into the conversation Musk’s political views and comments, which don’t align with many Californians,’ particularly his initial customer base of Bay Area drivers,” said Maas.
Tesla did not respond to a request for comment.
Why is Tesla stock surging?
Still, Tesla has been on a tear this week, rising 22%, after a blockbuster earnings call and report fueled its strongest performance since 2013. Part of that was due to Tesla’s report that its $80,000 apiece Cybertruck turned a profit for the first time. The rally sent Musk’s personal wealth soaring another $34 billion, pushing his net worth to $270.3 billion in a single day.
And Musk has hinted that Tesla has more innovations in store. This month, Tesla announced a self-driving robotaxi, called a Cybercab, and a fully autonomous Robovan with enough space for a family. On Wednesday, Musk confirmed the robotaxi has been making maiden voyages under the auspices of Tesla employees on the streets of San Francisco. The world’s-richest-man said during the earnings call that other car companies will find themselves in jeopardy if they don’t focus on autonomy, as Tesla has.
“A lot of automotive companies or most automotive companies have not internalized this, which is surprising, because we’ve been shouting this from the rooftops for such a long time, and it will accrue to their detriment in the future,” said Musk.
To be sure, the Tesla Model Y is still the top-selling car in California year-to-date, CNCDA reported. And, Tesla is California’s second-best-selling brand after Toyota. Furthermore, the Model Y competes in the red-hot SUV/crossover segment, which dominates the market. The Model 3 competes in the shrinking passenger car segment, where sales dropped 13.1%, while SUVs rose 3.4%. The Model Y sells nearly three times the volume of the Model 3.
It remains to be seen whether that future could be at risk due to Musk’s political affiliations. His strong political stance has gone against the grain compared to other high-profile CEOs. A rep for JPMorgan Chase CEO Jamie Dimon, for instance, issued a denial this month that Dimon had endorsed Trump.
Overall, that trend has held for much of this election season. However, talking politics in the workplace is likely to ramp up in the next few weeks as votes pour in and employees head to the polls in November.
Kate Duchene, CEO of global professional services firm RGP, told Fortune that ever since the pandemic, people have further blended their personal and professional worlds, so more talk is likely inevitable.
“For any company, it’s becoming more challenging to keep political conversations completely outside of work,” said Duchene, who consults with 70% of Fortune 500 companies. “Businesses and managers should be aware that these types of conversations are more than likely to happen, especially in the coming weeks. When it comes to political discussions, diversity of opinions should be welcome in the workplace, as long as all parties keep it professional and respectful.”
California
Immigrant truck drivers in limbo as feds deny California effort to reissue licenses
Thousands of immigrant drivers whose commercial driver’s licenses are set to expire next month were left bewildered and disappointed when news spread that California was planning on reissuing the licenses — only to learn federal regulators had not authorized doing so.
Amarjit Singh, a trucker and owner of a trucking company in the Bay Area, said he and other drivers were hopeful when word of California’s intentions reached them.
“We were happy [the California Department of Motor Vehicles] was going to reissue them,” he said. “But now, things aren’t so clear and it feels like we’re in the dark.”
Singh said he doesn’t know whether he should renew his insurance and permits that allow him to operate in different states.
“I don’t know if I’m going to have to look for another job,” he said. “I’m stuck.”
Singh is one of 17,000 drivers who were given 60-day cancellation notices on Nov. 6 following a federal audit of California’s non-domiciled commercial driver’s license program, which became a political flashpoint after an undocumented truck driver was accused of making an illegal U-turn and caused a crash in Florida that killed three people.
The nationwide program allows immigrants authorized to work in the country to obtain commercial driver’s licenses. But officials said the federal audit found that the California Department of Motor Vehicles had issued thousands of licenses with expiration dates that extended beyond the work permits, prompting federal officials to halt the program until the state was in compliance.
This week, the San Francisco Chronicle obtained a letter dated Dec. 10 from DMV Director Steve Gordon to the U.S Department of Transportation stating that the state agency had met federal guidelines and would begin reissuing the licenses.
In a statement to The Times, DMV officials confirmed that they had notified regulators and were planning to issue the licenses on Wednesday, but federal authorities told them Tuesday that they could not proceed.
DMV officials said they met with the Federal Motor Carrier Safety Administration, which oversees issuance of non-domiciled commercial driver’s licenses, to seek clarification about what issues remain unresolved.
A spokesperson for the Department of Transportation, which oversees the FMCSA, would only say that it was continuing to work with the state to ensure compliance.
The DMV is hopeful the federal government will allow California to move ahead, said agency spokesperson Eva Spiegel.
“Commercial drivers are an important part of our economy — our supply chains don’t move and our communities don’t stay connected without them,” Spiegel said. “DMV stands ready to resume issuing commercial driver’s licenses, including corrected licenses to eligible drivers. Given we are in compliance with federal regulations and state law, this delay by the federal government not only hurts our trucking industry, but it also leaves eligible drivers in the cold without any resolution during this holiday season.”
Bhupinder Kaur — director of operations at UNITED SIKHS, a national human and civil rights organization — said the looming cancellations will disproportionately impact Sikh, Punjabi, Latino and other immigrant drivers who are essential to California’s freight economy.
“I’ve spoken to truckers who have delayed weddings. I’ve spoken to truckers who have closed their trucking companies. I’ve spoken to truckers who are in this weird limbo of not knowing how to support their families,” Kaur said. “I myself come from a trucker family. We’re all facing the effects of this.”
Despite hitting a speed bump this week, Kaur said the Sikh trucking community remains hopeful.
“The Sikh sentiment is always to remain optimistic,” she said. “We’re not going to accept it — we’re just gonna continue to fight.”
California
Two Republicans lead race to be next California governor—New poll
Two Republican candidates are leading the latest poll in California’s gubernatorial race amid concerns that Democrats could be locked out of the general election in the solidly blue state.
Newsweek reached out to the California Democratic and Republican parties for comment via email.
Why It Matters
California is a solidly Democratic state that rarely elects Republicans to statewide office. However, Democrats are facing a potential challenge in next year’s gubernatorial race. The Golden State uses a unique “jungle primary” system where all candidates, regardless of their party, appear on the same ballot and the two candidates who receive the most votes advance to the general election. This means there is a possible, even if unlikely, scenario where two Republicans could advance to the general election and lock Democrats out of the race.
A string of recent polls suggests that could be a possibility in the race next year to replace retiring Governor Gavin Newsom, a Democrat, who cannot run for a third term due to term limits.
What To Know
California’s gubernatorial race has drawn the interest of several well-known Democrats in the state including Representative Eric Swalwell, former Representative Katie Porter, former Secretary of Health and Human Services (HHS) Xavier Becerra, businessman Tom Steyer, former Los Angeles Mayor Antonio Villaraigosa, Superintendent of Public Instruction Tony Thurmond and former Controller Betty Yee.
By contrast, two well-known Republicans—Riverside County Sheriff Chad Bianco and commentator Steve Hilton—are in the race.
The math problem for Democrats would be if the high number of Democrats split the vote in a way that allows Bianco and Hilton to narrowly advance to the general election. Early polls show that as a possibility, though there is still time for Democratic voters to coalesce around specific candidates before June’s primary.
On Thursday, pollster Civic Lens Research released a survey showing Bianco and Hilton advancing to the general election. Hilton led with just under 18 percent of the vote, while Bianco followed with about 14 percent.
Swalwell placed third with about 12 percent support, while Porter and Steyer followed with 9 and 7 percent support, respectively. Still, many voters are still unsure of who they are going to support—and could be decisive in the race. Thirty-one percent said they were undecided in the poll.
The poll surveyed 400 likely California primary voters via a web questionnaire sent by text message between December 14 and 16.
Other polls have also showed a Democratic lockout as a possibility. An Emerson College poll, which surveyed 1,000 likely voters from December 1-2, showed Bianco leading with 13 percent, while Hilton and Swalwell were tied at 12 percent. An FM3 poll showed Hilton lead with 18 percent, followed by Bianco and Swalwell at 17 percent. It surveyed 821 likely voters from November 30 to December 7 and had a margin of error of plus or minus four percentage points.
Zev Yaroslavsky, a former member of the Los Angeles County Board of Supervisors and director of the Los Angeles Initiative at the University of California, Los Angeles, told Newsweek polls are “largely reflecting name identification and party identification.”
“Voters are not focused on the June primary yet,” he said. “With only two Republicans in the mix along with half a dozen or more well-known Democrats, it is not surprising that most of the candidates are bunched up.”
Democratic and undecided voters are likely to “consolidate behind one or two prominent candidates” by the spring, Yaroslavsky said, noting that other candidates will either drop out or “just be relegated to electoral irrelevancy.”
“The top Democrat will assuredly receive far more than 13% in June. Republicans have a ceiling of what they can hope to get in California, and when Democratic and independent voters coalesce around on or two candidates, at least one of the leading Democratic candidates will come in first or second and advance to the general election. At that point, it’s the Democrats’ to lose,” he said.
What People Are Saying
Corrin Rankin, chairwoman of the California Republican Party, told Newsweek in November: “Poll after poll shows Californians are tired of the decades of failure and corruption by Democrats, and they are turning to Republicans for real solutions and leadership on issues like affordability, public safety, and homelessness.”
Rusty Hicks, chair of the California Democratic Party, told Newsweek in November: “We look forward to electing another Democrat as California’s next Governor in 2026.”
What Happens Next?
The primary is set for June 2, 2026, so candidates will spend the first half of next year making their case to voters to convince them they are the best option to lead the nation’s most populous state.
California
California orders Tahoe Truckee schools to leave Nevada sports over transgender athlete dispute
The California Department of Education is requiring the Tahoe Truckee Unified School District to follow state law in another clash over transgender athletes in youth sports in the state.
Currently, student-athletes in Tahoe Truckee Unified play sports in Nevada because of how close they are. But Nevada now bans transgender athletes in girls’ sports, which is against California state law.
So after decades of playing in Nevada, California’s Department of Education is requiring the Tahoe Truckee Unified School District to compete in California to comply with state laws that allow student athletes to compete based on their gender identity.
David Mack is the co-founder of Tahoe Pride and describes the new youth sports divide in the Tahoe region.
“So no one’s happy, it’s really sad, it’s quite tragic in that way,” Mack said. “People feel really upset that the school moved so fast on this. They feel blindsided, they feel not listened to, and then other people, like the trans kids, are getting steamrolled over like they’re not recognized in this argument.”
Nevada state lawmakers passed a law in April requiring a mandatory physical signed by a doctor to deem the athlete male or female based on their birth sex.
“This is a politically manufactured issue to try to divide people,” Mack said.
The Tahoe Truckee Unified School District is responding to the California Department of Education with a solution that the district legally join the California Interscholastic Federation in 2026, but continue to play in the Nevada Interscholastic Activities Association through 2028.
When asked if transgender athletes would be able to compete while operating in the NIAA, the district said it’s “still in the early stages of this transition, and many details are still being developed.”
In an October letter addressed to the California Department of Education, the school district’s attorney, Matthew Juhl-Darlington, said the Tahoe Truckee Unified is “not aware of any transgender youth who have expressed interest in participating in its 2025-2026 athletic programs.”
“While the NIAA recently updated its polices to define ‘male’ and ‘female’ based on sex assigned at birth and not as reflected in an individual’s gender identity, as required under California law, the District is interpreting and implementing this policy in a manner consistent with California’s legal requirements,” Juhl-Darlington said in the letter.
California Republican Rep. Kevin Kiley is opposed to the state order, arguing the weather conditions in Tahoe need to be considered.
“So in order to compete in a California league, you have to deal with this snowy weather and the travel dangers and so forth,” Kiley said.
The school board was expected to explain its solution to both join California’s CIF while playing in the NIAA through 2028 to parents and students Wednesday night at a board meeting.
So far, the California Department of Education has not said if it will accept this as a solution.
-
Iowa5 days agoAddy Brown motivated to step up in Audi Crooks’ absence vs. UNI
-
Iowa7 days agoHow much snow did Iowa get? See Iowa’s latest snowfall totals
-
Maine4 days agoElementary-aged student killed in school bus crash in southern Maine
-
Maryland5 days agoFrigid temperatures to start the week in Maryland
-
Technology1 week agoThe Game Awards are losing their luster
-
South Dakota6 days agoNature: Snow in South Dakota
-
New Mexico3 days agoFamily clarifies why they believe missing New Mexico man is dead
-
Nebraska1 week agoNebraska lands commitment from DL Jayden Travers adding to early Top 5 recruiting class