Tesla's reign as California's top electric vehicle brand is fading. Quartz reports Tesla no longer accounts for the majority share of electric vehicle registrations in the state, which is the largest EV market in the US. In the first quarter of this year, Tesla's market share based on California EV registrations dropped to 43.9%, down from 55.5% a year earlier, according to the California New Car Dealers Association. Tesla registrations fell over 15% year-over-year, while other EV brands saw a 35% jump during the same period.
From a sales perspective, the association logged 43,322 vehicles sold in the state in Q1. Despite the market share decrease, its Model Y SUV and Model 3 sedan remain the state's top two best-selling EVs. The Model 3 remained California's top-selling "near luxury" car. The Honda Prologue, Hyundai Ioniq 5, and Ford Mustang Mach-E made up the remainder of the top five. Tesla's Cybertruck ranked eighth among EV sales. "An aging product lineup and backlash against Elon Musk's political initiatives are likely key factors for the decline," per the report.
The report adds that Tesla's lackluster sales are bringing down the state's Zero Emission Vehicle (ZEV) market overall: "California posted a second quarterly decline in ZEV registrations, holding just 20.8% of the market share (down from 22% in 2024)," it noted. Per Electrek, roughly one out of every four EVs sold in the US are sold in California. Reuters reports Tuesday will be a big day for Tesla watchers: The company will release its first-quarter earnings. (Tesla's Q1 sales overall weren't great.) (This content was created with the help of AI. Read our AI policy.)
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