Tesla has been the top electric car brand in California since 2008. But for the first time ever, its sales in the state have dropped below 50% of the EV market. In the first quarter of 2025, Tesla sold 42,322 vehicles in California, which is a 15% drop compared to the same time last year.
California’s EV Market Grows While Tesla Falls Behind
Even though Tesla’s sales dropped, the overall electric vehicle market in California grew by 7.3%. According to the California New Car Dealers Association, a total of 96,416 EVs were sold in the state during the first three months of 2025.
Chevrolet, Hyundai, and Honda Show Big Gains
Other car companies are quickly catching up. Chevrolet saw a 62% increase in EV sales. Hyundai also grew, and Honda’s new Prologue model became the third best-selling EV in California, right behind Tesla’s Model Y and Model 3.
Tesla’s Global Sales Also Decline
It’s not just California—Tesla’s global sales also went down by 13% in the first quarter. In the U.S. market overall, Tesla’s sales fell by 8.6% while the country’s EV market grew by 11.4%, according to Cox Automotive.
Elon Musk’s Political Role Sparks Backlash
Many believe Tesla’s falling reputation is connected to CEO Elon Musk’s political moves. Musk has joined President Trump’s administration as a leader in the Department of Government Efficiency (DOGE). This group aims to cut U.S. government spending but has made major layoffs and reduced important services, including USAID, which helps poor countries with food and medicine.
California Protesters Push Back Against Tesla
Protests have been growing outside Tesla stores across California. People are unhappy with Musk’s political role and Tesla’s direction. In places like Palo Alto, protesters gathered while some Tesla owners joined in or showed support.
Tesla’s Reputation Takes a Major Hit
Caliber, a firm that tracks public opinion, reported that Tesla’s brand reputation has dropped sharply. The company’s score fell from 69 to just 47, far below the average score of 59 for carmakers in the U.S. This drop is especially concerning in liberal-leaning states like California, where most EV buyers live.
EV Growth Slows Down in the State
Electric vehicles made up 20.8% of all cars sold in California during the first quarter. That’s slightly less than the 21% from last year. Experts say that even though EV numbers are growing, it may not be enough to meet California’s goal of 35% EV sales by 2026.
Dealers Say Tesla’s Drop Is Holding Back Progress
“Dealers sell what customers want,” said Robb Hernandez, chairman of the California New Car Dealers Association. He explained that while many brands are growing their EV presence, Tesla’s sharp sales drop is keeping overall EV sales flat in California.
Tesla Stock Falls as Financial Report Approaches
Tesla’s stock dropped by 5% on Wednesday, reaching $241.55 per share. The company’s shares are now down 40% this year. Investors are waiting for Tesla’s first-quarter financial results, which are expected on April 22.
