Elon Musk’s Tesla experienced the largest decline in new car sales among all automakers in California during 2025, marking a substantial setback in one of the world’s most important electric vehicle markets.
Bloomberg reports that Tesla experienced the largest decline in new car sales among all automakers in California during 2025, marking a substantial setback in one of the world’s most important electric vehicle markets. The EV giant’s market share in the state dropped to 9.9 percent of all registered vehicles, down from 11.6 percent in 2024, according to data from Experian published by the California New Car Dealers Association.
The decline represents the most significant market share loss of any automotive brand operating in California last year. Tesla’s drop was more than three times larger than the next biggest decliner, Dodge. As a result of this substantial decrease, Tesla fell to the number three position among auto brands in California for 2025, compared to the previous year when it trailed only Toyota.
In absolute numbers, Tesla registered fewer than 180,000 vehicles in California last year, representing a decrease from almost 203,000 registrations in 2024. This decline of approximately 23,000 vehicles contributed significantly to the overall contraction of California’s electric vehicle market. Total zero-emission vehicle registrations in the state fell by about 7,300 cars to slightly more than 378,000 units.
The California market troubles mirror broader challenges Tesla faces globally. The company is contending with an aging vehicle lineup and a slow-selling Cybertruck, while facing intensifying competition from newer electric vehicle offerings from established mainstream automakers. Additionally, the elimination of federal tax credits for electric vehicle purchasers in the United States has placed additional pressure on demand that was already showing signs of weakness before the policy change.
California has historically served as a bellwether market for electric vehicle adoption in the United States, making Tesla’s performance there particularly significant for understanding the company’s competitive position. The state has implemented aggressive policies to promote zero-emission vehicles and has consistently accounted for a disproportionate share of national electric vehicle sales.
Industry observers note that Tesla’s ability to reverse its market share decline in California and other key markets will likely depend on several factors, including the introduction of refreshed vehicle designs, competitive pricing strategies, and the company’s capacity to address consumer concerns while managing the impact of external factors such as policy changes and leadership controversies.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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