Tesla experienced a 15.1% decline in electric vehicle registrations in California during the first quarter of 2025, according to industry data reported by Reuters. The drop reflects growing headwinds for the automaker in a critical U.S. market.
This regional decline aligns with Tesla’s broader global performance, where quarterly deliveries fell 13%—marking the lowest level in nearly three years. The downturn is attributed to increased market competition, a pause in consumer purchases ahead of a planned refresh of the Model Y, and public reaction to CEO Elon Musk’s political activities.
According to the California New Car Dealers Association, the company’s share of the state’s battery electric vehicle (BEV) market dropped from 55.5% in the same period last year to 43.9%.
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