Tesla's California electric car sales decline, market share slips under 50%
Things are not looking as bright as usual for Tesla in the Sunshine State. The brand's dominance of California's electric vehicle scene keeps eroding as its market share drops below 50 percent for the first time in Q1 2025.
According to the California New Car Dealers Association, Tesla accounted for only 43.9 percent of EV sales in the state in the first three months of 2025, compared to 55.5 percent in the same period last year.
Meanwhile, Tesla's new EV registrations dropped by 15 percent, even though other brands surged by 35 percent. The loss is significant because the period coincided with Americans' rush to procure cars before the current government's impending auto tariffs were enacted.
Californians bought more than 42,000 Tesla cars, mostly the Model Y and Model S. The Cybertruck sold 2,282 units, ranking among the top 10 best-sellers.
The car dealer association links the slump to CEO Elon Musk's latest high-level political involvement and Tesla's aging product line-up.
California is critical to EV makers as it accounts for about one-third of all electric car sales in the US. It hosted Tesla's headquarters until 2021, when Musk moved it to Texas.
