Tesla sold one out of every 8 cars in California in 2023, 21.4% EV share
California hit a new record last year with 21.4% of new cars being all-electric, and once again Tesla led the pack with the two best-selling cars in the state, the Tesla Model Y and Tesla Model 3. But Toyota narrowly maintained its leadership as the top-selling brand in the state, with Tesla nipping at its heels.
The data was released yesterday by the California New Car Dealer’s Association (CNCDA) in their quarterly Auto Outlook. This was the Q4 and full-year report, reflecting on trends in auto sales for the full year in the state that leads the US in EV sales.
Compared to a national market share of 7.5%, EVs commanded 21.4% of sales in California. But just a couple years ago, California was down at ~7% of new EV sales, while the rest of the country was at ~2% – so we like to check in on CNCDA’s data every quarter to get a look at where the trends for the rest of the country might be going soon.
But California’s share of nationwide BEV registrations was down. Not long ago, California accounted for more than half of the EVs in the United States, but in 2023 California accounted for 33.8% of US BEV sales. This means that the rest of the country is picking up pace in EV sales, and that EVs are no longer the sole purview of California. This is an expected trend, but a welcome one – we don’t need California to keep hogging all the health benefits of EVs.
Leading the pack, as expected, were Tesla’s vehicles. The Model Y and Model 3 both outsold the competition by a wide margin – with Model 3 holding a 15.3% share in passenger cars (a 61% lead over the Toyota Camry, which had previously been the best-seller in California for decades) and Model Y holding a 10.8% share in light trucks, more than double its highest challenger, the RAV4, with a 4.7% share.
However, since Tesla only has a few models and Toyota has many, Toyota still maintained the crown for most sales in California. Toyota had a 15.7% market share for the whole year, and Tesla had a 13% market share, with Honda in third place at 9.7%.
13% means that one out of every 8 vehicles sold in California last year was a Tesla – from a company in just its 15th year of selling cars anywhere. Earlier in the year, it even looked like Tesla might be able to beat Toyota in California, as Tesla did outsell Toyota in Q2, but Toyota took back the crown in Q3 and maintained it in Q4.
One particularly interesting graph in the report is the share of alternative powertrain vehicles by type of dealership – Direct or Franchised. In this case, “Direct” refers to dealerships owned by the automaker in question, the vast majority of these sales coming from Tesla.
But in the chart we can see an increasing number of BEVs being sold by franchised dealers, as other manufacturers have finally gotten their BEV programs off the ground and are now selling a variety of vehicles, many of which only hit the market in the last model year or two. A majority of BEVs were still sold direct, but franchised dealer sales are catching up.
Between BEVs, PHEVs, and FCEVs, a full quarter of vehicles could access some sort of dedicated non-combustive energy source. Adding hybrids into the mix (you know, the cars that Toyota loves to pretend are electric, even though they aren’t), 35.9% of vehicles had an electric motor in them.
This was on the back of a tick down in EV share quarter over quarter, from 22.3% to 21.1%, and a tick up in hybrid share, from 11.7% to 13.3%. Plug-in hybrid share held roughly steady at 3.6%, up from 3.4%. Plug-in hybrids were buoyed by the exceptional popularity of the Jeep Wrangler PHEV, which is the 4th-best-selling car in the state with a plug on it, behind the two Teslas and the outgoing Chevy Bolt. The Wrangler PHEV outsold the RAV4 Prime almost two to one.
Tesla maintained its position as one of the companies with the best sales growth over the course of the year, up 24.6% from the previous year. Though this level of growth was lower than it has been in the past. With Tesla already being well established in California, it’s inevitable that growth percentages will slow down over time – or perhaps California, moreso than other states, is getting tired of Tesla CEO Elon Musk’s nonsense.
Tesla’s share of California’s BEV market dropped from 71% to 60.5%, another expected result of other vehicles entering the market. This was still higher than Tesla’s share of the overall US EV market, which stood at around 55% for the year.
But the winner in terms of sales growth was Rivian, which saw a 142.7% increase year over year. Big numbers like this are to be expected out of a new company with new models, but Rivian’s ramp up in production and sales this year was impressive nonetheless, with the company even raising (and then beating) production guidance during a year when media spent a lot of time falsely claiming that EV sales were down.
And on that point – in 2022, EVs made up 16.4% of the EV market in California, whereas in 2023 they made up 21.4%. That certainly looks like an increase to me, not a decrease. Meanwhile, one media narrative we haven’t heard much of is how ICE car sales actually are not growing. While auto sales as a whole were up in California by 11.9% in 2023, that’s because 190k more “electrified” vehicles (BEV/PHEV/HEV) were sold in 2023 than 2022, for a 2023 total of ~638k, whereas sales of pure combustion vehicles were flat at ~1.1 million. So in a year where the auto industry saw a significant recovery, most of that recovery, at least in California, was led by rising electric vehicle sales.
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Environment
China and India still rely heavily on coal, climate targets remain ‘very difficult’ to achieve
The Huaneng Huaiyin power station in Huaian, China, on Nov. 12, 2023.
Nurphoto | Nurphoto | Getty Images
China and India have not reduced coal generation for electricity, according to a new study, making it harder for Asia’s largest carbon emitters to reach their climate targets.
While both Asian countries have ambitious plans to cut emissions, heavy reliance on coal — the dirtiest fossil fuel — continues to be the most reliable and affordable way of meet rising electricity demand.
Global electricity generation from coal has been consistently rising for the last two decades, nearly doubling from 5,809 terawatt-hours in 2000 to 10,434 TWh in 2023, a new study by energy think tank Ember found. The highest increases came from China (+319 TWh) and India (+100 TWh), the study showed.
According to the IEA, coal remains the biggest energy source for electricity generation, supplying more than one-third of global electricity. It will continue to play a crucial role in industries such as iron and steel until new technologies are available.
“It will be very difficult to meet targets without a rapid face down in coal. It’ll certainly be out of reach,” said Francis Johnson, senior research fellow and climate lead at the Stockholm Environment Institute’s Asia Center.
“We’re not phasing out coal fast enough,” he warned.
China
Asia’s largest economy has two big climate goals: to strive for peak carbon emissions in 2030, and reach carbon neutrality in 2060. Still, reliance on coal has shown no signs of waning.
Electricity demand in the East Asian nation has increased by sevenfold since the beginning of the decade, while coal demand has climbed by more than five times over the same period, Ember’s research showed.
China, the world’s largest coal producer, emitted 5,491 million tonnes of carbon dioxide from electricity generation in 2023. That’s at least three times more than the U.S. (1,570 MtCO2) and India (1,470 MtCO2), data from the study showed.
Just because you cut coal emissions, it doesn’t mean you get away with emissions in the other sectors
Francis Johnson
senior research fellow and climate lead at the Stockholm Environment Institute
However, the country has made notable progress in renewable energy development, leading to a slowdown in the rate of emission increase from an average of 9% annually between 2001 and 2015, to 4.4% annually between 2016 and 2023, the energy think tank said.
“China is very close to peak emissions and the clean energy transition is going extraordinarily fast,” Dave Jones, global insights program director at Ember, told CNBC.
“Even with very high levels of electricity demand growth, it looks like the levels of renewables growth would be enough,” Jones said.
Excavators transfer coal at the coal terminal in China’s eastern Jiangsu province on January 22, 2024.
Str | Afp | Getty Images
Clean electricity contributed to 35% of China’s total electricity generation, the Ember report showed. Hydropower — its second-largest energy source — made up 13% of that mix, while wind and solar combined reached new highs of 16% in 2023.
“Had wind and solar generation not increased since 2015, and demand had instead been met by coal, emissions would have been 20% higher in 2023,” the report highlighted, adding that those two sources can now generate enough electricity to power Japan.
But Stockholm Environment Institute’s Johnson warned China still needs to be less dependent on other forms of fossil fuels.
“Phasing down coal is absolutely necessary, but it’s not sufficient. Just because you cut coal emissions, it doesn’t mean you get away with emissions in the other sectors,” he noted.
India
When India became the world’s most populous country last year, power demand grew by 5.4% compared to 2022. This was more than double the global increase.
The country’s leaders have been optimistic about its path to net zero, making bold claims that 50% of its power generation will come from non-fossil fuel forms of energy by 2030.
Emissions from the power sector are expected to peak around 2030, while total energy-related emissions will reach their highest around 2034, Climate Action Tracker estimated.
Tuticorin Thermal Power Station in Tuticorin, India, on March 21, 2024.
Bloomberg | Bloomberg | Getty Images
But the Ember study showed that added pressure from droughts pushed the country to generate 78% of its electricity from fossil fuels, where coal made up 75% of that mix.
Like China, India has also made significant strides in other forms of renewable energy.
In 2023, India overtook Japan to become the world’s third largest solar power generator, according to Ember.
Ember found that India’s solar power generation totaled 113 terawatt-hours (TWh) last year, representing a 145% increase since 2019. This ranks behind China (584 TWh) and the U.S. (238 TWh).
“When it comes to the pathway to carbon neutrality for China and India, you would expect the emissions to rise when demand grows. But at some point, the GDP growth needs to decouple with emissions where we need it to first peak, then fall,” Ember’s Asia Programme Director Aditya Lolla told CNBC.
Revived truck brand Scout Motors has set the timetable for the debut of its first-ever EVs. This summer, the public will catch a glimpse of an all-electric pickup and an SUV the Volkswagen sub-brand has been developing since its recent inception. Here’s what we know.
The current iteration of Scout Motors is derived from the beloved nameplate of off-road vehicles built by International Harvester in the ’60s and ’70s. While only about 530,000 Scout trucks were built during its 20-year production run, the early Jeep competitor still holds a small but passionate fanbase.
In 2022, Volkswagen Group shared plans to capitalize off that heritage and revive the namesake for the modern, EV age while still delivering customers the rugged, off-road performance its remaining predecessors are still celebrated for. With the help of contract manufacturer Magna International, Scout Motors has two initial EV models in development
We know the two flagship models will be built in the US, specifically in South Carolina, but so far, we’ve only seen broad renderings of them. The young EV brand is currently working through design and development in Novi, Michigan, while a new Innovation Center is being built nearby.
Meanwhile, construction of Scout Motors’ production facility in The Palmetto State is underway. Before those builds begin however, we still need to see what Scout Motors’ first two EVs look like and know we know when to expect that milestone.
We’ll get a look at Scout Motors’ first EV in late summer
Per an update to the Scout Motors website, an EV reveal is being planned for late summer 2024. Exactly when or where this anticipated event will occur remains TBD. Still, we hope to get the invite as we were there for the groundbreaking ceremony in South Carolina this past February.
That’s about all we’ve learned about new information surrounding Scout Motors’ first two EVs, but previous conversations with executives, including CEO Scott Keogh, have hinted at what to expect during the summer reveal.
In talks with Electrek, Keogh expressed the advantage Scout Motors has as a clean slate design approach that, unlike most young EV brands, has an existing heritage backed by the purchasing and production expertise of parent Volkswagen Group.
That said, Scout intends to do its own thing regarding EV development and design. Scout’s Chief Production Officer, Dr. Jan Spies, told us that the platform technology Scout’s first two trucks will sit atop is “not a twin, daughter, or brother” to any of the platforms currently used in the larger VW Group.
Spies elaborated, saying Scout Motors’ bespoke EV platform gives it an advantage in terms of development speed and offers a beautiful opportunity to deliver a unique car for its environment. Keogh assured us the two bespoke EVs are both “badass” and “robust,” designed to tackle the elements and stay true to the legacy of trucks that inspired them.
We expect Scout to sacrifice a bit of range in exchange for such off-road performance, but we won’t know where those numbers land until the official reveal. In February, Scout Motors’ CEO said the final designs of both trucks were super close, with the actual engineering of the EVs to quickly follow.
While the young automaker has confirmed it will unveil both models in late summer, we have already been warned that EV production will require some cadence while the South Carolina plant continues to scale. Which model will be built first has yet to be determined… or at least made public. Maybe we will find out in a couple of months. We will report back then!
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Tesla has now disclosed that it is spending money to promote its shareholders vote to approve of Elon Musk’s $55 billion compensation package.
Back in 2018, Tesla shareholders approved one of the biggest compensation plans of all-time: a $55 billion fully stock-based CEO compensation plan for Elon Musk.
In January, a judge sided with lawyers representing a Tesla shareholder alleging that Tesla’s board misrepresented the compensation package when presenting it to shareholders.
It’s a complicated issue, but in short, the judge found that Tesla’s board and Musk didn’t play by the rules of a public company when it presented the plan to shareholders.
The judge found that Tesla had governance issues when coming up with the compensation plan and those issues were not communicated to shareholders before voting on the plan.
Instead, Tesla claimed that the plan was negotiated by “independent board members” when it was found that some board directors had personal financial dealings with Musk outside of Tesla, amongst other things.
The Delaware court found that this invalidated the vote, and therefore, Tesla had to rescind the compensation plan.
Last month, Tesla told shareholders that it will ask them to vote on moving Tesla’s state of incorporation to Texas and then revote for Musk’s compensation plan without changing anything.
Since then, Tesla has been working hard to get shareholders to vote for those two items. It started a website to promote it, sent countless communications to shareholders about it, and now, the company’s board is going a step further.
In a new filing with the SEC, Tesla confirmed that it is now buying ad spaces to encourage shareholders to vote for these items:
Tesla has to file with the SEC all the “communications” it has with shareholders regarding the vote and this time, the communications are listed as “sponsored” on Google – meaning that Tesla bought Google ads for it.
The automaker even spent money on Elon Musk’s pockets by buying ads on X with the post listed as “promoted”.
Tesla shareholders have until June 13th to vote their shares.
Electrek’s Take
Tesla’s board is clearly getting nervous about the vote.
It’s pretty funny that Tesla’s board, which got Elon’s compensation package invalidated after a judge found governance issues, is now approving spending Tesla’s money on an Elon-owned platform to try to influence a vote that would send even more money into Elon’s pockets.
That’s where we are now.
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