Tesla’s foothold in the EV market in California, the birthplace of Tesla, took a hit in the first quarter of 2025. New car registrations in the state dropped by 15.1%, marking the steepest decline in over a year. Meanwhile, data from the California New Car Dealers Association (CNCDA) revealed that Tesla’s market share in the state’s EV market decreased from 55.5% to 43.9% compared to the previous year. On the flip side, overall EV sales in the state saw a 7.3% increase, with new car registrations climbing by 8.3%.
Despite unveiling the new Model Y in January, analysts point to Tesla’s older models losing traction and increasing resistance towards Elon Musk, especially his involvement with DOGE, as reasons for the drop in market share. California, once a stronghold for Tesla, is now seeing more pushback and discontent.
The challenges in California mirror Tesla’s global situation, with worldwide vehicle deliveries dropping by 13% in the same quarter and the company’s stock price plummeting by 35% since the beginning of the year.
TLDR: Tesla faces market share decline in California and globally, with challenges in retaining dominance in the EV market.
Leave a Comment