BEIJING(16 (Xinhua) — Tesla’s registration in California, the largest U.S. electric car market, fell by nearly half in the fourth quarter of last year, according to a new report from market research firm Dominion Cross-Sell. This is due to a sharp reduction in tax incentives for Tesla buyers in the United States in 2019, to $3,750 at the beginning of the year and a further cut to $1,875 in July.
Existing U.S. policies give electric vehicles a $7,500 tax credit, but those tax breaks will be phased out once automakers reach a sales milestone of 200,000 vehicles. Tesla reached this milestone in July 2018.
Tesla’s registrations in California fell 46.5 percent in the fourth quarter to 13,584 vehicles from 25,402 a year earlier, according to a report released Wednesday. The number of model 3 models registered for the best-selling model fell by half to 10,694.
“One can assume that Tesla’s performance in the U.S. has peaked because they haven’t exceeded 2018 sales for five months,” said Shane Marcum, vice president of Dominion Cross-Sell. “
The new figures come nearly two weeks after Tesla surpassed Wall Street’s estimate of annual car deliveries to reach the low end of its target, hitting an all-time high after years of turmoil.