April 17, 2025 – Tesla’s sales in California have taken a significant hit, with a 15% drop in vehicle registrations during the first quarter of this year, as reported by Reuters. This decline comes at a time when California, long a pioneer in electric vehicle adoption, is witnessing a growing backlash against the company and its CEO, Elon Musk.
The California New Car Dealers Association (CNCDA) highlighted that Tesla’s market dominance in the electric vehicle sector is no longer assured. The shift in consumer sentiment is partly attributed to widespread discontent over Musk’s involvement in U.S. politics and his controversial stance on various issues, which has fueled protests in several cities across the state.
Despite a 7.3% increase in zero-emission vehicle sales in California during the same period, Tesla’s market share has plummeted from 55.5% to 43.9%. Competitors like Honda, Ford, and Chevrolet have capitalized on this opportunity, expanding their presence in the market.
The CNCDA, in a statement released on Wednesday, attributed Tesla’s declining market share to “aging product lines and a growing dissatisfaction with Musk’s political positions.” This sentiment has contributed to Tesla’s global sales dipping by 13% in the first quarter.
Adding to the company’s woes, Tesla’s stock price has plummeted by 5.2%, losing nearly half of its value since its peak in mid-December. California, accounting for roughly one-third of Tesla’s U.S. sales, plays a pivotal role in the company’s success within the American market.
The Tesla Model Y remains the top-selling electric vehicle in California, although its sales have declined by approximately 30% year-over-year in the first quarter. The CNCDA attributed this drop to production line adjustments that resulted in several weeks of lost output. Furthermore, the CNCDA anticipates a 2.3% decrease in new vehicle registrations in California for 2025 compared to the previous year, citing U.S. trade policies as a contributing factor.
