- Tesla’s new registrations in California fell 21.1 percent in the second quarter.
- Still, the Model Y and Model 3 remain California’s best-selling electric vehicles.
- Honda Prologue and Mustang Mach-E are gaining traction in the Golden State.
Ever since Tesla’s inception, California has been one of its most important markets, thanks to the state’s progressive policies and deep commitment to electric vehicles. While California remains hugely important for Tesla, new registrations continue their decline for the seventh straight quarter. Alarm bells should be ringing at Tesla HQ.
Read: Tesla’s European Sales Bloodbath Continues, But One Country Is Over Hating Musk
Data from the California New Car Dealers Association (CNCDA) shows that 41,138 new Tesla registrations were recorded across the state in the second quarter. That’s a significant 21.1 percent decline from Q2 in 2024 and was no doubt caused in part by Musk’s continued involvement in politics, including forming the new America Party.
Sales Slide Continues Into 2025
The picture doesn’t improve when looking at year-to-date figures. Tesla’s California sales for the first half of 2025 are down 18.3 percent compared to the same timeframe last year. To reverse course, Tesla may need to accelerate the rollout of its rumored budget-friendly, stripped-down Model Y, a move that could help re-engage cost-conscious buyers, especially with the $7,500 federal tax credit set to expire on September 30.
While Tesla’s sales in California continue to fall, the Model Y and Model 3 are still the best-selling new EVs in the state. This year, a total of 44,112 Model Ys have been registered in California, while 31,394 Model 3s have also found new homes. The next best-selling hybrid, PHEV, or ZEV model is the Toyota Camry Hybrid, shifting 30,464 units over the same period.
Behind the Model Y and Model S, the third best-selling EV in California is the Hyundai Ioniq 5, with 7,498 examples sold through the first half. That positioned it ahead of the Honda Prologue with 5,931, the Ford Mustang Mach-E with 5,594, the Chevrolet Equinox at 5,584, and the BMW i4 with 5,396 units registered.
Tesla’s declining numbers stand in contrast to broader industry gains. Toyota, for example, saw its second-quarter sales in California rise 9.8 percent, from 78,964 to 86,683 vehicles. Honda also posted a 9.3 percent increase, jumping from 49,651 to 54,278 registrations over the same period.
