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As Tesla CEO Elon Musk continues to bash California and stump for Trump, West Coasters are getting revenge

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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.

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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.

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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.

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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.”



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Teen dies after losing control of electric motorcycle in Garden Grove

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Teen dies after losing control of electric motorcycle in Garden Grove


A 13-year-old boy riding an electric motorcycle in Garden Grove died after veering into the center median, flying into the air and then slamming onto the roadway, authorities said.

The crash took place shortly before 10 p.m. Thursday in the area of Magnolia Street and Larson Avenue, according to the Garden Grove Police Department. The Police Department received word of the incident via a call from Life360, a family safety and location-sharing app with emergency assistance features.

The Santa Ana teen was critically wounded in the crash, police said. He was loaded into an ambulance and taken to a hospital, where he was later pronounced dead.

The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle when he struck the median and lost control of the vehicle, according to authorities. Electric motorcycles are primarily designed for off-road riding and are not legal to use on California roadways.

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The teen’s death is the latest in a spate of serious collisions involving electric motorcycles and dirt bikes — some of which have led to serious injuries, death or charges for parents who allegedly allowed their minors to illegally ride the speedy devices.

An Orange County mother was charged with involuntary manslaughter last week after authorities said an 81-year-old Vietnam veteran died from injuries he suffered when her 14-year-old son slammed into him while riding an e-motorcycle, then fled the scene.

In April, a Yorba Linda father was charged with felony child endangerment after authorities alleged his son ran a red light and was hit by a car while riding a modified e-motorcycle capable of reaching up to 60 mph.

Last week, a 19-year-old riding an e-motorcycle was arrested on suspicion of felony evading police and felony reckless driving. He was accused of leading sheriff’s deputies on a speedy chase through a residential area of Oceanside, blowing past multiple red lights and knocking a deputy off a motorcycle.

Electric bikes, motorcycles and dirt bikes have surged in popularity in recent years and are especially popular among teens. However, while e-bikes generally top out at 28 mph and are legal to ride on the street, many e-motorcycles can go twice as fast and are generally not street legal.

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Anyone who witnessed Thursday’s crash in Garden Grove or has a video of the incident is asked to contact Investigator Lang via phone at (714) 741-5823 or email at mlang@ggcity.org.



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California to give newborns free diapers. What it means for families

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California to give newborns free diapers. What it means for families


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Gov. Gavin Newsom announced that newborn babies in California will start receiving free diapers as part of a new “first-in-the-nation” initiative to support families across the state with the rising cost of living.

Newsom, along with state leaders, met in San Francisco on Friday, May 8 to unveil California’s new partnership with Baby2Baby, a national nonprofit that provides diapers to children in need, and to explain how this new program will provide families with 400 “high-quality” diapers before they leave the hospital.

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Over the last six years, families have seen the average cost of diapers increase by 45% or “thousands plus dollars a year,” which has made raising a family unattainable for some, Newsom said during the press conference.

“Every baby born in California deserves a healthy start in life — and that means making sure parents have the basics they need from day one,” Newsom said. “One out of four families skip meals in order to pay for diapers.”

“The biggest problem defined universally, in our cities, our state and our nation, is the issue of affordability. This is what affordability looks like; it’s not a slogan, it’s a box. A box of diapers,” Newsom added.

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This new effort will be known as Golden State Start, as California uses its bulk purchasing power to obtain 40 million high-quality diapers in hopes of easing financial strain for families and supporting infant health by helping parents maintain an adequate supply of clean diapers.

“The first days at home with a newborn should be focused on the love, connection, and joy of an expanded family, not stress about affording diapers,” said Kim Johnson, secretary of the California Health and Human Services Agency. “This program helps ensure families can begin that journey with greater stability and peace of mind.”

The program is expected to start at the beginning of this summer in participating California hospitals. The list of participating hospitals was not released at the time of publication, but Newsom noted that the state was in talks with at least 60 hospitals across California.

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During the first year of the program, CalRx and Baby2Baby noted that they would prioritize hospitals that serve large numbers of Medi-Cal patients to ensure low-income families benefit early from the program. The state plans to scale the program to additional hospitals and birthing centers over time.

Newsom noted that this program is expected to grow: In 2027, the state is set to purchase 80 million diapers from manufacturers, with the goal of eventually purchasing up to 160 million.

“California families deserve to feel supported during one of life’s more exciting, yet vulnerable transitions,” Jennifer Siebel Newsom, the first partner, said in a press release. “Golden State Start will deliver immediate relief, allowing parents to focus on what matters most — caring for their newborn. Together with Baby2Baby, we can ease the financial burden on California parents while supporting healthier outcomes for babies and their mothers.”

Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.socialSign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.



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Nordstrom Rack expands in Southern California with new stores

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Nordstrom Rack expands in Southern California with new stores


Nordstrom Rack will open two new Southern California stores next year.

The discount outlet said on Wednesday that it will open new stores in Marina del Rey in the spring of next year and in Torrance later that summer. The locations join 69 Nordstrom Rack locations already operating in the state.

“We’re excited to grow our footprint in the Los Angeles market and introduce new customers to the Nordstrom experience,” Gemma Lionello, president of Nordstrom Rack, said in a news release.

Nordstrom Rack is an outlet version of the upscale retailer Nordstrom, offering merchandise from top brands at a discount.

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Bargain retailers have expanded in California recently, benefiting from increasingly cost-conscious customers, who are motivated to spend less by economic anxiety and inflation.

Discount outlets such as Ross, T.J. Maxx and Dollar General have capitalized on the tough economic times and experienced accelerated growth. Ross reported record sales in 2025, up 8% from the year prior.

Bargain retail stores have acquired a larger supply of discounted products by buying unsold merchandise from struggling high-end stores. Customers who feel destabilized financially by tariffs and global conflict have used the stores to try to find lower prices.

The new Nordstrom Rack storefronts will be in Marina Marketplace in Marina del Rey and Rolling Hills Plaza in Torrance.

“The Los Angeles retail market continues to see growth from retailers like Nordstrom looking for anchor space in vibrant areas,” Scott Burns, senior managing director for the company that manages Marina Marketplace, said in a news release.

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The bargain outlet boom comes as department stores and malls struggle. Nordstrom, the upscale retailer, closed a Santa Monica location in July. Macy’s shuttered two California locations this year and will reduce its footprint by 30% in 2027.

Shopping malls across Southern California have also struggled to bring sales back as immigration raids continue to scare customers away.



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