Tesla still holds a dominant grip on California’s electric vehicle (EV) market, but both its sales and market share weakened in 2024. Data from the California New Car Dealers Association (CNCDA) shows Tesla’s vehicle registrations fell by 11.6% year-over-year, with a 7.8% drop in the fourth quarter alone.
This marks the automaker’s first annual sales decline in the state.
Despite maintaining its lead in California’s EV segment, Tesla’s share of the zero-emission vehicle (ZEV) market dropped from 60% in 2023 to 52.5% in 2024. Among all automakers, Tesla’s overall market share in the state shrank from 13% to 11.6%, reflecting both increased competition and shifting consumer preferences.
One of the biggest losses for Tesla was in Model 3 sales. Registrations for the electric sedan dropping by 36% in 2024, further contributing to the company’s overall decline. On the other hand, the Model Y remained California’s best-selling vehicle with 128,923 registrations.
Meanwhile, the Cybertruck and Model X were among the top-10 best-selling BEV and PHEV models in 2024, coming in sixth and eighth place respectively.
Despite Tesla’s struggles, California’s EV market remains strong, with registrations increasing by 1.2% overall. When excluding Tesla, EV registrations in the state growing by 20%, signaling growing consumer interest in EVs.
With Tesla’s sales declining while overall EV sales grow, there are several potential factors contributed to the automaker’s sales decline in California.
Data from the CNCDA shows Tesla is facing growing competition from both legacy automakers and new EV startups, with brands like Honda, Hyundai, Cadillac, and Lincoln seeing double-digit increases in registrations, eroding Tesla’s overall market share. There have also been economic challenges, including high interest rates and affordability concerns, further dampening EV demand despite Tesla’s aggressive price cuts.
Additionally, CEO Elon Musk’s political stance and Tesla’s headquarters move to Texas have alienated some California consumers and drawn scrutiny from local lawmakers.
