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Tesla's Grip Loosens in California EV Market
23 Jan
Summary
- Tesla's market share in California fell to 9.9% last year.
- Model Y remains California's best-selling EV and top light truck.
- Governor Newsom seeks $200 million for EV purchase rebates.
Tesla Inc. experienced a notable decrease in its share of new vehicle sales in California last year, an essential market for electric vehicles. The company's market share for all registered vehicles in the state declined to 9.9% from 11.6% in 2024. This reduction led to Tesla falling to the third-ranked auto brand in California, behind Toyota.
Despite the overall market share decrease, Tesla's most popular models continue to be strong performers. The Model Y SUV maintained its position as the state's best-selling electric vehicle and the top-selling light truck. The Model 3 sedan secured the second spot for best-selling passenger cars in California. The company registered fewer than 180,000 vehicles, a decrease from nearly 203,000 in the previous year.
This downturn mirrors global trends for Tesla, attributed to an aging vehicle lineup and increasing competition from newer EV models by mainstream automakers. Additionally, the expiration of federal EV tax credits in the US has impacted demand. In response, California Governor Gavin Newsom is advocating for a $200 million initiative to reinstate tax rebates for EV purchases, aiming to revitalize demand in the state.
