When it comes to electric vehicles in the U.S., California is by far the largest market: It accounts for nearly a third of the country’s EV sales. And for years, Tesla dominated this market, making up a majority of those sales. But that’s changed: Tesla’s share of EV sales in California fell below 50% in the first quarter of 2025—even as sales of other EVs increased.
In the first quarter of 2024, registrations for new Tesla vehicles made up 55.5% of California’s EV market. But in the first quarter of 2025, it fell to 43.9%, according to data from the California New Car Dealers Association (CNCDA). At the same time, registrations for all other EV models increased by 35%. Overall, zero emissions vehicle sales rose 7.3% in California between January and March.
Still, no other companies are close to competing with Tesla when it comes to EV models. But they have seen their share increase slightly. The second highest market share went to Ford, with 6%—up 1.5% from the first quarter in 2024—followed by BMW, with 5.6% (up .7% year over year) and then Hyundai, with 5.4% (up 1.1% year over year).
When it comes to the top selling battery electric and plug-in hybrid models in 2025, Tesla still took the number one and two spots with its Model Y and Model 3. There have been more than 23,000 Model Ys sold in California so far this year, and nearly 14,000 Model 3s. Hyundai took the third and fourth spots with its Prologue and Ioniq 5, but those sales were much lower—about 4,400 and 3,700, respectively. Ford’s Mustang Mach-E took the number five spot, with 3,600 new sales.
Tesla backlash is affecting sales everywhere
Telsa once held an even bigger share of California’s EV market. In 2023, it accounted for 60% of EV sales, and in 2022, 71%. Part of that decline is likely due to the increase in EV offerings from other brands. But Tesla’s shrinking sales in California, especially this year, are also a sign of the company’s overall slide away from EV dominance—a trend fueled in part by CEO Elon Musk’s involvement in the Trump administration. “An aging product lineup and backlash against Elon Musk’s political initiatives are likely key factors for the decline in Tesla BEV market share,” the CNCDA wrote in its report.
Along with the political backlash, Tesla dealt with manufacturing disruptions this year that led to downtime at its assembly plants globally.
Across Europe, Tesla has already sold 42.6% fewer cars this year, according to the European Automobile Manufacturers Association—even though, once again, overall EV sales are up. Sales of Tesla’s China-made EVs also plunged 49.2% in February alone, compared to the year prior. (Teslas sold in the U.S. are made in California and Texas, though they still include some parts from abroad; Tesla does have a factory in Germany to sell in Europe, though it also exports cars from China.)
Tesla’s stock price has also crashed, falling more than 40% since the start of the year. In one day alone at the beginning of April, the company lost 15% of its value.
For years, Tesla was the dominant brand associated with electric vehicles, but that’s clearly changing. Other car companies are still building up their EV offerings, and even bringing them stateside—Hyundai recently opened a $7 billion manufacturing plant in Georgia to build electric and hybrid vehicles here.
When it comes to overall car sales, though, the Trump administration’s tariffs on auto imports have muddled the year’s outlook. In March and April, customers flocked to buy cars before the tariffs kicked in, but it’s not yet clear if those tariffs will lead to higher vehicle prices, and by how much. California itself expects new vehicle registrations to fall 2.3% this year compared to last, because of U.S. trade policies.