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:
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Model Y: 23,314 registrations – best-selling car in California
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Model 3: 13,992 registrations
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Cybertruck: 8th place with 2,282 registrations
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Model X: 13th place with 1,800 registrations
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Model S: 934 registrations (not in Top 25)
Reasons for the Decline
Several factors contributed to the decline in the EV market in California:
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Production Shift: Planned downtime at the Fremont and Giga Texas plants for the Model Y Refresh led to reduced deliveries
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Purchase Hesitation: Customers were waiting for the new Model Y generation
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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.
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