Despite escalating competition, Tesla remains at the forefront of California's electric vehicle market.
Tesla Remains Top EV Seller in California, but Market Share Declines
Tesla remains the dominant player in California's electric vehicle (EV) market, but its market share and sales volume are declining compared to previous years. According to the latest data from California Auto Outlook, Tesla captured 43.9% of California's EV market in Q1 2025, a significant drop from years past.
Despite the decline, Tesla's Model Y and Model 3 continue to outsell all other EV models in California by a large margin. The combined sales volume of the top six other EV models pales in comparison to Tesla's two best sellers, with the Model Y alone selling nearly 50% more than the Model 3. This means Tesla still leads the California EV market by a large margin, despite losing ground.
Tesla's sales downturn has contributed to an overall decline in California's zero-emission vehicle (ZEV) market share, which dropped to 18.2% in Q2 2025 from 22% in Q2 2024. Meanwhile, competitors such as Honda, Toyota, and Chevrolet have experienced growth in registrations, gaining ground as Tesla's dominance erodes.
Hyundai accounted for 5.4% of California's ZEV sales, which is the next closest EV competitor to Tesla in Q1 2025. California continues to lead the U.S. in EV adoption, with nearly 29% of all ZEVs sold nationwide registered in the state.
The electric vehicle market in California is expanding and becoming increasingly competitive. Tesla's core models (Model Y, Model 3) remain top choices for consumers due to their wide availability, strong charging infrastructure, and continued over-the-air updates. However, the company's overall registrations dipped 15.1% year-over-year in Q1 2025.
Despite the decline, Tesla remains a defining force in the transition to electric mobility in California. The Model Y is the best-selling vehicle in California overall during Q1 2025, with 23,314 registrations, and the Model 3 is the second best-selling vehicle in California during Q1 2025, with 13,992 units.
California is pushing toward its 35% ZEV target for 2026 under California's Advanced Clean Cars II mandate. Although Tesla remains the largest EV seller in California, its market share is contracting, allowing other automakers to improve their positions in the state’s growing EV market. The electric vehicle market in California is becoming more competitive, and it will be interesting to see how Tesla and its competitors fare in the coming quarters.
Sources:
- California Auto Outlook, Q1 2025 Report
- California Air Resources Board, Q2 2025 Data
- InsideEVs, Q1 2025 Sales Data
- Electrek, Q2 2025 Sales Analysis
- Green Car Reports, Q2 2025 ZEV Market Share
- The electric vehicle (EV) market in California continues to grow in competition, with Tesla remaining a key player, despite a decline in its market share and sales.
- Tesla's Model Y and Model 3 continue to remain the top-selling EV models in California, outpacing the combined sales of the next six EV models.
- California's zero-emission vehicle (ZEV) market is experiencing a shift,as Tesla's dominance is being challenged by automakers such as Honda, Toyota, and Chevrolet.
- Despite the decline in Tesla's registrations, the company's electric vehicles, particularly the Model Y, remain popular choices for consumers due to factors like wide availability, strong charging infrastructure, and continuous over-the-air updates.
