Tesla’s US Sales Drop 16% In April.

Tesla’s (NASDAQ: TSLA | TSLA Price Prediction) US sales fell 16% in April, based on Automotive News. The car research company uses registrations as a proxy for sales.

The sales numbers are better than those in Europe, where sales have fallen by 40% or more in the last several months. Nevertheless, the April US numbers indicate that Tesla is likely losing market share to legacy car companies such as Ford (NYSE: F), GM (NYSE: GM), and Hyundai/Kia. These manufacturers have spent billions of dollars to enter the US electric vehicle (EV) market, yet they still have little to show for it. If Tesla continues to weaken, that may change.

Several issues have triggered Tesla’s US problems. Among them is Elon Musk’s association with President Trump and the significant budget cuts he has attempted to implement. Another concern is that Tesla’s current models are outdated and have not undergone significant updates in years. The market has also been flooded with used Teslas, which push prices thousands of dollars compared to new ones.

Tesla will have a hard time turning the US around. Resentment about Musk’s role in the government persists. People still have bumper stickers that say, “I bought my Tesla before Musk went to Washinton.” Owners continue to trade in their Teslas even at prices below market value.

Another problem Tesla faces is that companies like General Motors have established extensive fleets of electric vehicles (EVs). General Motors has 13 electric vehicle (EV) models across all its brands. Chevy has three, including an EV version of its highly popular Silverado full-sized pickup. Cadillac has three modes as well. And GM has nearly 4,000 dealers in the US, making test drives and deliveries easy. Most of these also have service departments.

For Tesla to regain its US success, it needs its sales to increase sharply year over year again.