California Electric Vehicle Buyers Are Moving Away From Tesla | Carscoops
Tesla’s new registrations experienced a significant decline in the second quarter, dropping by 21.1 percent in California.
Nonetheless, the Model Y and Model 3 continue to be the top-selling electric vehicles in the state.
New competitors like the Honda Prologue and Mustang Mach-E are making headway in California.
Since Tesla's establishment, California has remained a crucial market due to the state's progressive policies and strong commitment to electric vehicles. While California holds great significance for Tesla, new registrations have now decreased for the seventh consecutive quarter, signaling a concerning trend for the company.
According to the California New Car Dealers Association (CNCDA), 41,138 new Tesla registrations were reported in California for the second quarter, reflecting a notable 21.1 percent drop compared to Q2 in 2024. This decline can be partly attributed to Musk's ongoing political activities, including the formation of the new America Party.
Sales Decline Continues into 2025
The situation does not improve when examining year-to-date data; Tesla's sales in California for the first half of 2025 are down 18.3 percent compared to the same period last year. To counter this trend, Tesla may need to expedite the release of its anticipated budget-friendly, simplified Model Y, which could attract cost-sensitive buyers, particularly with the $7,500 federal tax credit nearing its expiration on September 30.
Despite the declining sales, the Model Y and Model 3 remain the best-selling new EVs in California. This year, California has registered 44,112 Model Ys and 31,394 Model 3s. The next leading hybrid, PHEV, or ZEV vehicle is the Toyota Camry Hybrid, which sold 30,464 units during the same timeframe.
Following the Model Y and Model 3, the Hyundai Ioniq 5 ranks as the third best-selling EV in California, with 7,498 units sold in the first half of the year. It surpasses the Honda Prologue at 5,931 units, the Ford Mustang Mach-E at 5,594 units, the Chevrolet Equinox at 5,584 units, and the BMW i4 at 5,396 units.
Tesla's declining figures contrast with overall industry growth. For instance, Toyota's second-quarter sales in California increased by 9.8 percent, rising from 78,964 to 86,683 vehicles. Honda also experienced a 9.3 percent uptick, from 49,651 to 54,278 registrations during the same period.
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California Electric Vehicle Buyers Are Moving Away From Tesla | Carscoops
Tesla's registrations experienced a significant decline in Q2, as new rivals made gains.