Tesla's vehicle registrations in California fell more than 20% in the last quarter, representing its seventh consecutive quarterly decline. Meanwhile, overall new car sales in California grew. The California New Car Dealers Association reported a drop in zero-emission vehicles' market share from 22% in 2024 to 18.2% in 2025, with Tesla's struggles negatively influencing the state's electric vehicle sales. Consumer backlash linked to CEO Elon Musk's political activities has also contributed to Tesla's brand image issues. Competition and a lack of new products further complicate the company's situation.
Registration for Tesla vehicles in California has decreased by more than 20% in the last quarter, marking the seventh consecutive quarterly decline in the state.
Despite the overall new car sales growth in California, the decline in Tesla's sales is negatively impacting the state's overall electric vehicle market.
The California New Car Dealers Association has indicated that zero-emission vehicles accounted for 18.2% of new car sales in the second quarter of 2025, down from 22% in 2024.
Consumer backlash against Elon Musk's political involvement has notably harmed Tesla's brand image in California, a state characterized by its liberal leanings.
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