Tesla’s sales in California—the largest auto market in the U.S.—plummeted in the first quarter of this year, while Hyundai and Kia showed robust growth. Public backlash against Tesla’s CEO Elon Musk appears to be translating into poor performance.
According to a report released by the California New Car Dealers Association (CNCDA), Tesla’s new vehicle registrations in California for the first quarter totaled 42,322 units, a 15.1% drop from the same period last year.
Tesla’s share of California’s electric vehicle (EV) market also shrank significantly, falling from 55.5% at the end of last year to 43.9% by the end of the first quarter of 2025, a decrease of 11.6 percentage points. The CNCDA noted that Californians have given Musk and Tesla the Cold Shoulder, adding that six consecutive quarters of sales decline demonstrate a persistent downward trend for Tesla.
Musk’s political activities have played a role in hurting the company’s declining performance in California, a state known for its liberal values. His association with President Donald Trump has fueled negative sentiment among California consumers.
Meanwhile, overall new vehicle registrations in California for Q1 reached 463,114, an 8.3% increase year-over-year, with electric vehicle registrations rising 7.3% to 96,416 units.
Hyundai, Kia, and Genesis significantly expanded their market presence. Hyundai’s new vehicle registrations surged by 30.5%, while Kia rose 25.7%, and Genesis surged by 45.1%.
In terms of market share, both Hyundai and Kia gained 0.7 percentage points each, while Genesis increased by 0.2 percentage points. In the EV segment, Hyundai and Genesis saw new vehicle registration increases of 35.0% and 39.1% respectively.
Notably, Hyundai’s Ioniq 5 sold 3,762 units, ranking fourth among electric and plug-in hybrid vehicles.
However, the CNCDA stated that the outlook for the remainder of the year remains uncertain, despite a strong Q1 performance in the auto market. It predicts a 2.3% year-over-year decline in annual new vehicle registrations for California.
The association also noted that changes in trade policy are adding uncertainty to the market, suggesting that a rush to purchase vehicles in March ahead of potential tariff increases, might not last.
