by Decline in Tesla Registrations in California
In the second quarter of 2025, the number of new Tesla vehicle registrations in California decreased by 21.1% compared to the same period last year. However, the Model Y and Model 3 remain the most popular electric vehicles in the state. Competitors such as the Honda Prologue and Mustang Mach-E are gradually gaining momentum.
According to the California New Car Dealers Association, only 41,138 Teslas were registered in the second quarter. This is the seventh consecutive quarter that Elon Musk’s company has shown a decline in performance. Experts attribute this, in part, to the political activism of the company’s founder.
Market Dynamics
For the first half of the year, Tesla sales in California fell by 18.3%. Despite this, the Model Y (44,112 registrations) and Model 3 (31,394) are ahead of all other electric cars. Among hybrids, the Toyota Camry Hybrid leads with 30,464 units sold.
While Tesla is showing a decline, other manufacturers are increasing their presence in the California market. Toyota increased sales by 9.8%, and Honda by 9.3% in the second quarter. Interestingly, the Hyundai Ioniq 5 became the third most popular electric vehicle after Tesla’s models.
The situation may change with the release of the budget version of the Model Y, especially considering the upcoming end of the federal tax credit in September. However, for now, the trend indicates that Californians are increasingly considering alternative options among electric vehicles.
