Tesla’s Model Y continues to dominate as California’s top-selling vehicle, solidifying its appeal among Californians despite a highly competitive EV market.
The California Auto Outlook report, issued by the California New Car Dealers Association (CNCDA), shows that Tesla remains a powerful force in the state’s auto market, leading EV adoption and setting benchmarks for alternative powertrains. Although the report notes increased competition, Tesla’s unique direct-to-consumer model and consistent innovation have kept its vehicles as favorites for Californian drivers.
The Model Y alone has reached an impressive 105,693 registrations this year, far outpacing competitors and affirming Tesla’s stronghold as the EV of choice. Even the Model 3 remains a popular option, ranking as the third best-selling passenger car in the state, just behind the Honda Civic and Toyota Camry.
Tesla’s brand loyalty and cutting-edge technology continue to resonate with customers, especially in a landscape where California EVs now make up 22.2% of all new vehicle registrations.
Tesla’s influence has also driven a broader market shift, with electric vehicle options expanding across the board. While legacy automakers are now entering the BEV space more aggressively, Tesla’s leadership has paved the way for California’s increasing embrace of electric transportation, which includes hybrids and plug-in hybrids. Today, alternative powertrains make up 39.4% of new car registrations, reflecting a growing alignment with Tesla’s mission toward sustainable energy and transportation.
Even with a slight decrease in market share from a flood of new entrants, Tesla’s core strength remains its unwavering customer base and its commitment to innovation, which has propelled it to achieve a 12.1% overall market share in California—second only to Toyota.
Last month, Tesla announced it had produced its 1 millionth Model Y at its Fremont factory, a major milestone.