By Hyunjoo Jin

SAN FRANCISCO (Reuters) – Tesla (NASDAQ:)’s market share in its key California market tumbled within the first quarter of the 12 months regardless of aggressive value cuts as rivals stepped up, knowledge confirmed on Friday.

Tesla Inc managed 59.6% of the battery electrical market in California from January to March, down from 72.7% for a similar interval final 12 months and the bottom since 2017, in keeping with Reuters calculations based mostly on knowledge from the California Vitality Fee.

Rivals corresponding to Volkswagen AG (OTC:), Normal Motors Co (NYSE:)’s Chevrolet and Kia Corp elevated their market shares in California in the course of the interval, though they continue to be within the single digits every.

Tesla’s gross sales in California accounted for 16% of the automaker’s international deliveries final 12 months, in keeping with Reuters calculation. California is the largest U.S. state for zero emission autos.

Tesla CEO Elon Musk’s pursuit of Twitter and embrace of Republicans has sparked considerations about Tesla’s model, particularly in liberal states like California.

Globally, Tesla posted report quarterly automobile deliveries for the quarter, however quarter-on-quarter gross sales development was modest regardless of value cuts as rising competitors, particularly in China, and a bleak financial outlook weighed.

The value cuts hit Tesla’s first-quarter margins, pushing its shares down practically 10% on Thursday.