auto dealer in black and red logo
MenuMENU
SearchSEARCH

Tesla Continues Loss of California Favor

EV maker’s sales slump there for sixth straight quarter as state loses EV adoption ground.

April 16, 2025
Tesla Continues Loss of California Favor

Tesla's sales fell 15% in California in the first quarter in a six-quarter free fall.

Credit:

Pixabay

2 min to read


Tanking Tesla sales in California are slowing the state’s transition to all zero-emission vehicles.

The Texas-based electric-vehicle maker’s sales in the state fell 15% in the first quarter, according to the California New Car Dealers Association, which cited Experian data.

The sales decline for the U.S. EV market leader capped a year and a half of Tesla decreases in California, a leader in EV adoption. The carmaker’s market share stood at about 12% at the end of the quarter. Tesla nevertheless had the state’s best-selling passenger car in its Model 3.

The direct-sales automaker’s loss of favor in California is putting a drag on the state’s EV adoption efforts. Zero-emission vehicle sales there have fallen for two straight quarters to about 21% market share.

The state, which leads the country in EV registrations, according to Experian, has a mandate that all new-vehicle sales be zero-emission models by 2035. The CNCDA is trying to convince the California Air Resources Board to slow that timeline, saying automakers aren’t equipped to meet it.

"Dealers sell what customers want to buy,” said association Chairman Robb Hernandez, president of Camino Real Chevrolet. “No mandate can force consumers to choose otherwise. Although the manufacturers we represent are increasing EV sales in California, with the substantial decline in Tesla sales, EV market penetration is largely flat." 

Overall California new-vehicle sales rose in the quarter as consumers mirrored auto buying trends across the country spurred in large part by a rush to beat expected price inflation from U.S. trade tariffs. Year-over-year registrations increased 8% in the quarter, said CNCDA, which nevertheless forecasts a 2% annual sales slump due to the tariffs.

LEARN MORE: World EV Sales Up

 

 

More Industry

Front of large glass-paned, multistory office building
Industryby Hannah MitchellJuly 17, 2026

Toyota Financial Services Adds to HQ

The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.

Read More →
Tiny toy car falling out of jar of coins. “The $1K Payment”
Industryby Lauren LawrenceJuly 17, 2026

Four-Figure Loan Payments on the Rise

A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.

Read More →
Auto Dealer Today, Dealer Debrief 07/10/2026, with Lauren Lawrence
Industryby Lauren LawrenceJuly 10, 2026

Dealer Debrief: New-Vehicle Sales Update

In this week's debrief, host Lauren Lawrence discusses the state of new-vehicle sales.

Read More →
Ad Loading...
Handful of colorful crayons.
Industryby Hannah MitchellJuly 10, 2026

Color Your Ride

The first vehicles by startup automaker Slate will come with the option of a medley of wraps in five colors familiar from your childhood.

Read More →
silver SUV, gray floor, yellow wall
Industryby Lauren LawrenceJuly 10, 2026

China Leads Global EV Sales

Globally, electric-vehicle sales are continuing their upward trajectory, buoyed by Chinese exports, as the North American region continues to lag behind.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Ad Loading...
white electric car charging at an outside port
Industryby Lauren LawrenceJuly 2, 2026

Optimized Charging Could Reduce Costs

According to an Alliance for Automotive Innovation analysis, optimized EV charging could cut costs for drivers and improve grid infrastructure - potential adoption incentives.

Read More →
Closeup photo of a new white car on a road from the driver's side
Industryby Hannah MitchellJune 26, 2026

June Automotive Boon?

A forecast for this month’s new-vehicle sales tells a familiar 2026 story: Year-over-year comparisons must be made in light of last year’s aberrations.

Read More →
Seatbelt clip on infographic.
Industryby Lauren LawrenceJune 26, 2026

Safety Improvements Save Lives

Over the past 30 years, automakers have made many safety tweaks to their vehicles. An insurance industry testing group says that's largely thanks to its crash-worthiness program and that prevented fatalities are the clear result.

Read More →
Ad Loading...
Photo of three Chrysler Pacifica minivans, one each red, white and blue
Industryby Hannah MitchellJune 19, 2026

Indiana Dealership Changes Hands

The Chicago-area CDJR store has been in business for nearly 70 years and is now part of a fast-growing automotive group spread across six states.

Read More →