Tesla's sales in California fell 24.3% year-on-year in the first quarter of this year, indicating that demand for electric vehicles in the state is declining across the board. On Tuesday local time, the California New Car Dealers Association (CNCDA) released an outlook report for California’s automotive industry in the first quarter of 2026. The report shows that the market share of electric vehicles in California dropped to 13.7%, the lowest level since 2021. For comparison, the market share of electric vehicles in the same period last year was 20.9%.
Data shows Tesla's sales in the state have fallen sharply, with the electric carmaker reporting 31,958 vehicles sold, down more than 10,000 from the 42,211 units sold in the same period last year. However, the Tesla Model Y remains the best-selling electric vehicle in the state, with 22,907 units sold.
However, Tesla's share of the California electric vehicle market grew to 56% from 44.2% last year, which may indicate a larger slowdown in electric vehicle research and development by other manufacturers.
Tesla Model 3 sales exceeded 5,688 units in California in the first quarter, while the Cybertruck failed to crack the top 25 best-selling models in California.