Key Takeaways
1. Tesla’s market share in California fell below 50% for the first time, dropping to 43.9% in Q1 2025.
2. The company saw a 15% decrease in new EV registrations, while competitors experienced a 35% increase.
3. Over 42,000 Tesla vehicles were sold in California, with the Model Y and Model S being the most popular.
4. The Cybertruck sold 2,282 units, ranking among the top 10 best-selling electric vehicles.
5. California is crucial for EV sales, accounting for about one-third of all electric car sales in the U.S.
Things are not appearing as optimistic as they typically do for Tesla in California. The company’s hold on the electric vehicle market in the state is diminishing, with its market share falling below 50 percent for the first time in the first quarter of 2025.
Tesla’s Market Decline
Data from the California New Car Dealers Association shows that Tesla made up just 43.9 percent of EV sales during the first three months of 2025, a significant drop from 55.5 percent in the same timeframe last year.
In addition, Tesla experienced a 15 percent decrease in new EV registrations, while other manufacturers enjoyed a 35 percent increase. This decline is notable, especially as it occurred during a time when many Americans were eager to buy cars ahead of upcoming auto tariffs from the current administration.
Sales Figures
Californians purchased over 42,000 Tesla vehicles, primarily the Model Y and Model S. The Cybertruck, with 2,282 units sold, remains among the top 10 best-selling electric vehicles.
The car dealer association attributes this downturn to CEO Elon Musk’s recent political engagements and the aging lineup of Tesla’s products.
Importance of California
California plays a vital role for electric vehicle manufacturers, comprising roughly one-third of all electric car sales in the United States. Until 2021, it was also the location of Tesla’s headquarters before Musk relocated it to Texas.
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