Tesla’s grip on California’s electric vehicle market is slipping, according to a new report from the California New Car Dealers Association (CNCDA), shared last week.
In 2024, Tesla’s new vehicle registrations dropped by 11.6%, marking the company’s fifth straight quarter of decline. In Q4 alone, registrations fell by 7.8%, while Tesla’s overall EV market share dipped from 60% in 2023 to 52.5% in 2024.
Despite remaining one of the most popular brands, Tesla’s total market share in California (including all powertrains) dropped from 13% in 2023 to 11.6% in 2024, tying Honda for second place behind Toyota. The Tesla Model Y remained the state’s best-selling light truck, while the Model 3 tied for second place in passenger car sales, alongside the Honda Civic.
Tesla’s Cybertruck was the fifth best selling EV or hybrid, ahead of the Rivian R1S in 7th and F-150 Lightning in 13th place.
One of the biggest trends from the report is the rise of hybrid vehicles. While zero-emission vehicle (ZEV) registrations declined to 21.3% in Q4 (from 23.7% in Q3), hybrid sales surged. This suggests that California drivers may be easing into electrification rather than going fully electric right away.
CNCDA Chairman Robb Hernandez emphasized that consumer demand—not government mandates—will shape the market. “It’s not about pushing one type of vehicle over another—it’s about having the right inventory to meet real customer needs.”
Overall vehicle registrations in California stayed stable at 1.76 million in 2024, with a slight increase expected in 2025.
Toyota remains the top-selling brand, growing 4.4% in 2024, with 289,258 registrations. Honda gained ground, increasing sales by 11.5%.
