Tesla’s California Market Share Slips as EV Competition Intensifies
Tesla's dominance in California's electric vehicle market is eroding. New registrations fell to 9.9% in 2025, down from 11.6% the previous year, according to Experian data shared by the California New Car Dealers Association. The decline drops Tesla to third place among all car brands sold in the state—a notable retreat from its second-place position behind Toyota just a year earlier.
The 180,000 registrations recorded last year mark a significant drop from 203,000 in 2024. This downturn contributed to California's broader EV market contraction, with zero-emission vehicle registrations falling by approximately 7,300 units to just over 378,000. Stiff competition from legacy automakers rolling out new electric models, the phase-out of federal tax credits, and brand perception challenges linked to CEO Elon Musk's political activities have all played a role in Tesla's struggles.
