Tesla Drives Past Toyota To Take Lead In California's Auto Market Race

Tesla, Inc. TSLA is surging ahead in California, which is the biggest car market in the country.

What Happened: Tesla's new vehicle market share in California stood at 13.6% in the year-to-period, according to data released by the California New Car Dealers Association. This exceeded Toyota Motor Corp.'s TM share of 12%.

Statistics for nationwide market share showed Ford Motor Co. F snagging a 12.2% share compared to Toyota's 12% and General Motors Corp. GM-owned Chevrolet brand's 11.1% share. Tesla's nationwide market share was way below: 4.3%.

In absolute numbers, registrations for Toyota brand vehicles were at 133,375 units compared to Tesla's 123,482 units. While Toyota’s market share fell 2.9 points, Tesla's rose by 2.5 points.

Tesla's Model Y is the best seller in California among all categories, with registrations of 74,765 units, followed by the Model 3 at 41,718 units.

Toyota Camry was a distant third with registrations of 27,169 units.

See Also: Best Electric Vehicle Stocks

Why It's Important: Tesla's strong performance in California suggests the robust uptake of electric vehicles in the state. As Governor Gavin Newsom seeks a reduction in greenhouse gas emissions and to end climate change, the California Air Resources Board issued a mandate banning the use of fossil fuels in all vehicles sold in the state beginning in 2035.

Tesla's dominance, therefore, does not come as a surprise as the rest of the startup EV companies are having difficulty ramping-up production and selling affordable and at the same time compelling vehicles.

In premarket trading on Wednesday, Tesla fell 0.34% to $264.38, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Why Tesla’s Cybertruck Can Become A $30 Billion Business Overnight, According To One Tech Chronicler