By Kara Carlson, Bloomberg
Tesla Inc. squandered by far the biggest share of new-car sales in California last year, as the electric-vehicle maker lost ground in one of the world’s largest EV markets.
The company accounted for 9.9% of all vehicles registered in the state last year, down from 11.6% in 2024, according to Experian data published by the California New Car Dealers Association. The market share decline was more than three times that of Stellantis NV’s Dodge, dropping Tesla to the No. 3 auto brand in the state in 2025, after trailing only Toyota Motor Corp.’s namesake a year earlier.
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The downturn echoes Tesla’s struggles in other markets around the world. The company’s aging lineup and slow-selling Cybertruck faces growing competition from fresher EVs offered by mainstream carmakers, while the loss of federal tax credits for EV purchasers in the US has put more pressure on demand that already was faltering. Tesla has also contended with a consumer backlash to Chief Executive Officer Elon Musk’s political activities.
Tesla registered fewer than 180,000 vehicles in California last year, down from almost 203,000 in 2024. The decline contributed to the state’s overall EV market retreat, with total zero-emission vehicle registrations falling by about 7,300 cars to a little more than 378,000.
Still, Tesla’s most-popular models remained among the state’s top-selling vehicles. The Model Y SUV remained the best-selling EV in the state and was the No. 1 light truck of any type. Tesla’s Model 3 sedan was the state’s second-best selling passenger car, trailing the Toyota Camry.
To help bolster EV demand, California Governor Gavin Newsom, a Democrat, is seeking $200 million to resume offering tax rebates for EV purchases in the state.
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