In the first quarter of 2025, Tesla's market share did decrease from 55.5% to 43.9%, but it was enough to leave the competition far behind.

Tesla Market Share in California Q1 2025

Amidst strong overall growth in electric vehicle registrations of 35% YoY, Tesla recorded a decline in its registrations by 15.1%. Nevertheless, the company remains the undisputed leader with 42,322 new registrations:

  • Model Y: 23,314 registrations – best-selling car in California

  • Model 3: 13,992 registrations

  • Cybertruck: 8th place with 2,282 registrations

  • Model X: 13th place with 1,800 registrations

  • Model S: 934 registrations (not in Top 25)

Reasons for the Decline

Several factors contributed to the decline in the EV market in California:

  • Production Shift: Planned downtime at the Fremont and Giga Texas plants for the Model Y Refresh led to reduced deliveries

  • Purchase Hesitation: Customers were waiting for the new Model Y generation

  • Political Controversies & Tariffs: Discussions about Elon Musk and global trade barriers temporarily affected demand

Outlook for Q2 2025

With the now widely available Model Y Refresh and increasing production capacity, Tesla expects a strong second half of the year. The renewed delivery capability should stimulate growth in the EV market in California again and stabilize market shares.