Tesla is facing a significant downturn in sales and market share in California, the epicenter of the electric vehicle (EV) industry in the United States, as reported by Electrek.
The California New Car Dealers Association reports that Tesla’s vehicle registrations in California plummeted by 15% in the first quarter of 2025 compared to the same period last year, while registrations for all other zero-emission vehicles (ZEV) saw an increase of 35%.
In 2022, Tesla dominated the California EV market with 70% market share. Despite achieving record-breaking vehicle deliveries in 2023, intensifying competition has eroded Tesla’s market position, causing its share to slip to 60%. California remains the heartbeat of the U.S. EV market, accounting for 28% of all EV sales nationwide.
Industry analysts point to Tesla’s aging product lineup and the backlash against Elon Musk’s controversial political statements as primary factors behind the company’s declining market share in the EV sector. The situation was further exacerbated by protests and boycotts following the Department of Government Efficiency(DOGE) incident at the close of the first quarter.
