What’s happening in Colorado?
According to Colorado Automobile Dealers Association (CADA) President Matthew Groves, Tesla used to be the “dominant force in Colorado's electric vehicle market, [and] is now facing negative growth while competitors flourish.”
When 9NEWS interviewed Groves, he suggested that the influx of electric vehicle brands entering the Colorado market is making it more difficult for Tesla.
Although there isn’t a clear indication that residents are ditching the brand because of its co-founder and CEO, there are some statistics to back up Tesla’s decline in the state.
If the last few months of 2024 are any indication, that shift is accelerating. In the fourth quarter of 2024, Colorado’s vehicle registrations for Hyundai grew 56% compared to quarter 3, with Kia up 37% and Chevrolet up 49%. Compare this growth to Tesla, which only saw a 12% increase in registrations during the same time period.
When comparing this with where Tesla stood at the end of the year in 2023 in the same CADA report, the brand actually saw a 5% decrease in year-over-year registrations. Nissan surged a full 580% in registrations for the same time period, while Kia saw a 402% growth, followed by Hyundai (245%) and Chevrolet (120%).
Other brands are also gaining momentum. "Brands like Audi and Volkswagen, Jaguar, Mercedes, they took a little to come to market. Now that they are in the market, we're finding their rise is almost meteoric as Tesla falls off." Groves says.
In other words, Tesla is facing more competition from brands like General Motors, Hyundai and Rivian, which are looking to expand in the EV space with additional models. It’s also not only sedans and trucks competing with Tesla: more luxury cars and SUVs hope to grab a share of the market as well.
Affordability may also be driving some of these shifts in the Centennial state. Consumers are receiving generous incentives for electric vehicles, including discounts and rebates to help significantly lower the cost of a new EV.
Among the stacked incentives: an extra $2,500 off the cost if a vehicle's recommended sales price is lower than $35,000. This means Tesla may be facing more competition as consumers can get an even bigger discount from other brands offering more affordable models.
When someone shopping for a new vehicle stacks all the various incentives available, a low-cost EV like the Nissan Leaf S is eligible for $8,100 in total discounts.
This surge of more affordable EVs may simply indicate an expansion of a market that previously wasn’t as accessible to as many people.
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Tesla’s overall declining sales
The issue is not exclusive to Colorado either. WIRED reports that in February 2025, Tesla sales were down by nearly 6% from the same month last year (moving 43,650 cars compared to 46,262). Overall, of these, Cybertruck sales dropped 32.5%, while Model 3 fell by 17.5% in the U.S.
The same article notes that in Europe, sales dropped a staggering 75%, with Australia following relatively close behind at a 65% decline.
Does this downturn in sales mean that Tesla is going to face continued decline and a gloomy future? Not necessarily.
In the U.S., Tesla is still a dominant brand in the world of electric vehicles, with Model Y and Model 3 making up 40% of sales in 2024. The Tesla Cybertruck was still the fifth best selling electric vehicle in 2024.
While there may be many drivers who are staying away from Tesla, it seems like many are still interested in the brand.
Is Musk’s new political involvement truly putting off prospective buyers of Tesla electric vehicles? Hard data is still emerging, but Groves points, “As more and more cars come to market through traditional manufacturers, Tesla’s market share is declining rapidly.”
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