- Tesla’s EV market share in California fell to 43% during Q1 2025.
- Overall EV sales in the state rose 7.3% while Tesla’s dropped 15.1%.
- GMC, Jaguar, Porsche, and Subaru posted triple-digit EV growth.
Even in the land of sunshine and startups, being the poster child of electric cars doesn’t guarantee loyalty. Tesla’s hold on California’s EV market is loosening, and the numbers from the first quarter of 2025 make that clearer than ever.
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According to data released by the California New Car Dealers Association (CNCDA), Tesla saw a sharp 15.1 percent decline in Q1 sales, falling from 49,875 units last year to 42,322 this year. The company’s market share in the EV segment not only slipped below 50 percent but plummeted from 55.5 percent in Q1 2024 to 43 percent in 2025.
To put that in perspective, total EV sales in California actually grew by 7.3 percent during the same period, from 89,821 units last year to 96,146 in Q1 2025.
EV Winners and Losers
Several automakers made impressive gains, even if their absolute numbers hardly moved the needle. GMC posted a 318 percent increase over last year, reaching 1,041 units. Jaguar, despite selling through leftover inventory, nearly doubled its sales from 485 to 861 units. Porsche jumped 139 percent from 572 to 1,367 units, and Subaru saw a huge 177.8 percent spike from 333 to 925. On the losing side, Audi’s EV sales dropped 20 percent, while Lexus took a more significant hit, falling 43.7 percent to just 485 units, down from 861.
CA EV BRAND SALES Q1
Top-Selling EVs in California
Tesla still had the two best-selling EVs in the state: the Model Y with 23,314 units and the Model 3 with 13,992. They were followed by Honda’s new Prologue at 4,493 units and Hyundai’s Ioniq 5 at 3,762. But Tesla’s declining numbers also dragged on the broader zero-emission vehicle (ZEV) market. California registered its second consecutive quarterly drop in ZEV sales, with market share slipping to 20.8 percent, down from 22 percent in Q1 2024.
That’s important because reaching the California Air Resources Board’s Advanced Clean Cars II target of 35 percent ZEV sales for 2026 model year vehicles will require a 14.2 percentage point jump from current levels. It’s a steep, if not unrealistic, climb, especially considering some 2026 models, like the Tesla Model Y, are already on sale.
CA BEST SELLING EVs Q1 2025
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“Dealers sell what customers want to buy. No mandate can force consumers to choose otherwise,” said Robb Hernandez, CNCDA Chairman and President of Camino Real Chevrolet. “Although the manufacturers we represent are increasing EV sales in California, with the substantial decline in Tesla sales, EV market penetration is largely flat. This puts us well short of EV sales mandates that take effect this year.”
Overall Market Trends
Looking at all vehicle sales regardless of powertrain, the California market grew by a healthy 8.3 percent in Q1, with 463,114 units sold. Hybrids had a particularly strong quarter and now account for 17.9 percent of the market, getting closer than ever to EV figures.
Still, the CNCDA cautions that momentum could slow. Upcoming changes to trade policy and potential tariffs may cause prices to rise, cooling demand. “A rush of buying in March and April, likely ahead of anticipated tariffs, may be short-lived if vehicle prices spike,” the association noted.
California’s Top Brands and Models
Toyota was the top-selling brand in California with 76,625 registrations, capturing 16.5 percent of the market. Honda took second place this quarter with 10.8 percent, while Tesla dropped to third, claiming 9.1 percent, down from 11.7 percent a year ago. Toyota also led the light truck market, with Ford and Honda rounding out the top three.
Brands posting strong growth of 30 percent or more in year-to-date Q1 registrations include Buick, Mitsubishi, Genesis, Chrysler, Cadillac, Land Rover, Nissan, and Hyundai. Meanwhile, Tesla wasn’t the only one in reverse. Maserati dropped 60 percent to just 153 units. Alfa Romeo slid 48.6 percent, Audi was down 14 percent, and Dodge fell nearly 59 percent.
The Tesla Model Y was still the best-selling vehicle overall in the state with 23,314 units. It was followed by the Toyota RAV4 with 16,719, the Tesla Model 3 with 13,992, and the Toyota Camry with 13,792. In the used car market, the Camry led among vehicles four years old or newer with 6,026 units sold, while the Honda Civic topped the list for five- to eight-year-old cars with 5,897 units.
