Tesla Inc.’s dominance in California’s electric vehicle market is waning, with the company experiencing its sixth consecutive quarter of declining registrations. According to data from the California New Car Dealers Association, Tesla’s share of the state’s EV market dropped from 55.5% to 43.9% between Q1 2024 and Q1 2025.
The decline comes as the carmaker released a refreshed version of its top-selling Model Y in January but has struggled to compete with aging models that haven’t seen significant overhauls in years. The company’s CEO, Elon Musk, relocated Tesla’s headquarters to Texas in 2021 and has since aligned himself with conservative figures and policies, sparking backlash from Democratic leaders and voters.
Tesla showrooms have been targeted by protesters, who are critical of Musk’s involvement with President Donald Trump and his recent role with the White House DOGE office. The company’s stock is down 35% year to date, marking its worst quarter since January 2022. Overall, Tesla reported a 13% decline in Q1 delivery numbers compared to the same period last year.
The California slump mirrors wider challenges for Tesla globally, which has seen a 15.1% drop in registrations over the first quarter of this year. Despite efforts to boost sales, Tesla’s dominance in the state is receding as consumers increasingly turn to other options.
Source: https://www.businessinsider.com/tesla-sales-california-pre-tariff-data-2025-4