FI showroom red and grey logo
MenuMENU
SearchSEARCH

Tesla Gets Slower in Golden State

The EV maker continued to lose market share in the state in Q3

October 22, 2025
Tesla Gets Slower in Golden State

Tesla has been losing ground in the EV market-leading state for two years now.

Credit:

Pexels

2 min to read


Tesla keeps losing in its former home state.

The electric-vehicle maker’s third-quarter sales in California fell 9% for a total of two consecutive years of declines in the country’s EV adoption leader, according to data compiled by the California New Car Dealers Association.

Ad Loading...

Tesla’s sales in the state are down 15% so far this year. The decline comes despite a spike in EV sales there and across the country as consumers rushed to lock in federal tax credits that expired Oct. 1. All no-emission vehicle sales comprised about 25% of new-vehicle deliveries in the quarter, bumping total sales by 4%.

Tesla took just 10% of total new-vehicle market share in California for the quarter, the trade group reported.

As EVs are set to wane in the fourth quarter following the end of tax credits – California decided not to replace the federal breaks – hybrids are on the rise. The power train made up 19% of new-vehicle registrations in the quarter and year to date.

"Dealers are seeing real enthusiasm from customers for the latest hybrid and electric technologies, especially as the mainstay brands expand their lineups," said Robb Hernandez, CNCDA chairman and president of Camino Real Chevrolet. "Californians want choices that fit their lives and budgets."

Combined hybrid, plug-in hybrid and no-emission vehicles have made up 44% of the state’s new-vehicle sales so far this year, the group reported.

Ad Loading...

California had a mandate that all new-vehicle sales be no-emission vehicles by 2035. Congress struck that down this year, though the state has sued the Trump administration over the reversal.

Meanwhile, the state's insurance department also recently took enforcement action against Tesla's insurance arm, claiming mismanagement of consumer claims.

LEARN MORE: California Leading

 

More Showroom

Photo of parked cars of various types for sale on a lot
Showroomby Hannah MitchellJuly 20, 2026

Used Sales Hit Summer Drag

The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.

Read More →
desert road with cars driving away, Rebates Incoming with red star graphic, F&I and Showroom logo
Showroomby Lauren LawrenceJuly 15, 2026

California Launches EV Rebate Program

Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.

Read More →
Aerial shot of a car dealership
Showroomby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Ad Loading...
Photo of cars lined up on lot
ShowroomJuly 10, 2026

The Trade-In Paradox

Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.

Read More →
Phot of a dark Kia vehicle interior with steering part of steering wheel and dashboard
Showroomby Hannah MitchellJune 29, 2026

Focus on Vehicle Cabins

The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.

Read More →
Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Ad Loading...
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →
Dodge emblem on orange vehicle
Showroomby Hannah MitchellJune 15, 2026

New Vehicles Down for Most Brands

Healthy May sales cut into inventory as automakers kept a tight reign on supply, though some brands ended the month with excess units on the ground.

Read More →
Ad Loading...
Photo of the back of an electric Mercedes
Showroomby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →