Dan Carland took a walk through the Libian Entertainment Centre in Laguna Beach, wearing a baseball cap just above the bill, saying “Canada is not on sale.”
The Aliso Viejo resident and his wife Sue were kicking the tires on a recent Saturday. On this day, the couple were considering an R1S SUV built by Irvine-based electric vehicle startup Livian.
Both shook their heads when asked if Elon Musk’s Teslas was under consideration. “When Trump became president, Elon got hooked, so I didn’t touch it,” Dan Carland said.
EV registrations and web searches to buy or lease Teslas have fallen in the Santa Monica-based car analysts since the world’s wealthiest man took on a new role in Trump’s White House and began cutting down federal jobs.
With a wave of protests targeting facilities in the US and Europe, Musk Tesla’s backlash has opened the door for EV carmakers like Libian to gain market share.
Also, see: Libian Records’ first gross profits as EV policy puts the loom at risk
Teslajitter
On March 20, Musk reassured Tesla employees with all the hands that aired on X that the automaker was experiencing “a little stormy weather.” The automaker’s stock has plummeted nearly 50% since December, wiping out Trump’s uplift after the election.
Musk encourages investors to hold the stock, and then jokes that Tesla can’t pass the TV without igniting it, then, “I don’t want to buy our products, but I understand that we don’t have to burn it. That’s a bit unreasonable.”
According to Edmunds, Tesla owners have been turning cars at record levels since Musk launched Government Efficiency (Doge).
From January 1st to March 16th, carmakers saw the highest share of car dealers, according to Jessica Caldwell, Edmunds’ head of insights.
“These changes in Tesla’s consumer sentiment could create opportunities for legacy automakers and EV startups to gain position,” Caldwell said. “As Tesla brand loyalty and interest shake up, competitive pricing, new technology, or just less controversial people could seize Tesla owners and first-time EV buyers.”
In February, car analysts noted that shopping for new Tesla models has been immersed in the lowest points since October 2022 on the Edmunds website.
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Startups step up
Tesla owners who withdraw the brand are now the focus of smaller EV rivals.
Last week, Swedish luxury EV maker Polestar began offering a $5,000 incentive to lure Tesla owners into the Polestar 3.
Rivian is a small spot in the EV market, but its share is rising as a company led by RJ Scaringe begins production at its Illinois plant and starts work at its second facility in Georgia. A $6.6 billion loan from the US energy sector and a $5 billion commitment from VW will help push new automakers out of the assembly floor.
Tim Fallon, Libian’s Vice President of Manufacturing, said in an interview with Normal in Libian, Illinois last summer that the EV maker had more than 100,000 pre-orders for the $45,000 R2 vehicle leading to the 2026 market.
On Tuesday, Libian said it hopes to complete the vast expansion of the regular factory by the end of June. The new capacity will help the company increase its annual capacity to 215,000 vehicles.
In January, Libian reported that it had built 49,476 EVs in 2024 after lowering estimates from 57,000 months ago. The company has criticized the lack of components that have since been resolved.
Tesla, which built 1.8 million cars in 2024, has not disclosed pre-orders. In its fourth quarter results of 2024, released on January 29th, the company said it expects to grow production to 3 million units or 60% above 2024 production.
Boutique Sales
Like many startup EV makers, Libian is not a traditional dealer and does not sell cars through community events where potential customers drive vehicles.
“Growing brand awareness is a key move for this relatively new EV maker given the decline in production, especially as they aim to attract more mass markets with the R2, which is expected next year,” Caldwell said. “Libian is currently focusing on raising brand awareness, especially in a market with a growing interest in electric vehicles. These initiatives are not necessarily a direct response to changes in Tesla’s customer base, but the timing is undoubtedly an advantage.”
December 2023 – Long before Musk joined Trump at the White House, Libian opened its first showroom in Orange County in Laguna Beach in a renovated vaudeville-era theatre built in 1935. Two Libyan cars were parked in an old theatre on Saturday.
This is where Kullland and others stopped to get a close-up look.
Dmitriy Zagorodnyuk, executive manager of Irvine’s True North Heating and Air, is looking for a Libyan SUV to replace his Tesla Model 3.
“If we can do a fair deal, we might trade it,” said Zagorodnyuk, who is not a Tesla dislike, but who has crossed Tesla’s cybertruck off his list. “It’s too expensive.”
See: Tesla sales decline in California, Model 3 plummets 36%
In the country’s largest EV market, Libian has gained market share in California.
According to data provided by the California New Car Dealer Association, automakers ranked eighth in the state’s EV market share in 2024.
“Tesla’s market share has declined over five quarters, so we’ll precede Musk’s current controversy,” said Brian Mars, president of the California New Car Dealers Association, representing 1,200 franchised new car dealers. “Tesla sales fell for the first time in 2024.”
Tesla’s profits fall
The anti-fanatic movement has been built since the $44 billion acquisition of billionaire Twitter on October 27, 2022. The world’s wealthiest man uses a now-secret social media platform to post controversial tweets, memes and other tweets from X users, laughing at critics and politicians.
Tesla made a profit of $7.13 billion in 2024, down 52.4% from $149.9 billion in 2023. Profit for 2023 increased 19.2% from $12.58 billion in 2022 and 127.8% from 2021.
Maas believes Tesla’s market share will decline to an older product line rather than a CEO. EV makers are not introducing new models other than Cybertruck, which are plagued by recall and production challenges, he said.
“There hasn’t been a big change in Tesla’s top sellers, Model 3 and Model Y, over the last three to four years. In the automotive business, if you don’t refresh your 1-2 year model every year, you’ll be beaten by your competitors. I think you’re starting to see that at Tesla.”
Rivian, which manufactures the R1S SUV at a price tag of over $70,000, will produce the smaller SUV, the R2, at Stanton Springs North, near Social Circle, Georgia.
Libian and Tesla spokesmen were unable to comment on their strategy in the market.
According to the CNCDA, in 2024, California’s top selling EV was the Tesla Model Y with 128,923 registrations. The Model 3 sedan was second with 53,056. CyberTruck had 9,019 submissions.
Overall, Tesla had 52.5% or 203,221 registrations in the California EV market in 2024, according to the CNCDA. This represents a 11.6% decline in 230,010 registrations in 2023, when Tesla had a 60.1% share in California.
In comparison, according to the CNCDA, Libian had 12,020 registrations in 2024, up 17% from 10,277 registrations the previous year. Its market share rose to 3.1% from 2.7% last year in 2023.
The competition gets hot
Tesla feels more competitive. In particular, companies like Libian have begun to find their footing after years of struggling with funding, layoffs and other pressures since they were founded in 2009.
“Tesla has more competition than they’ve ever faced, and it’s putting a strain on the company,” Mars said. “There are certain segments in markets that are interested in climate change, new technologies. But that’s not 100% of the market.”
In February, Libian recorded its first-ever quarterly gross profit to close 2024, achieving its long-standing goal despite warning that policy in Washington could place a weight on electric vehicle sales this year.
“External factors could affect Libian’s 2025 expectations, including changes in government policies and regulations and difficult demand environments,” Libian said on February 20. “Libian guidance represents the current views of management regarding incentives, regulations and potential adjustments to customs structure.”
Still, some drivers remain Tesla’s stubborn.
Les Mustard, a Las Vegas resident, said he owns three Teslas, including the cyber truck he currently drives, and has no plans to go to a Libyan vehicle.
“I’m 100% Maga,” said Mustard at the Libian Showroom in Laguna Beach on Saturday, March 22, 2025.
“It’s the best car on the road built by the smartest man on the planet.”
Original issue: April 1, 2025, 1:33pm EDT
