Tesla's presence in California is diminishing, as evidenced by a 15.1% drop in vehicle registrations in early 2025. This decline is part of a larger trend, with Tesla experiencing reduced market share, falling from 55.5% to 43.9% in the state's electric vehicle sector. The downturn occurred despite the release of a refreshed Model Y and coincided with an overall increase in new car registrations. The company's strained relationship with California, especially impact of Musk's political stance, has led to protests at Tesla showrooms, intensifying the scrutiny on the brand.
Tesla's slide in California continued into a sixth straight quarter, with registrations down 15.1% in early 2025, marking its steepest quarterly loss in over a year.
Tesla's share of California's electric vehicle market dropped from 55.5% to 43.9% between Q1 of 2024 and 2025, as the market for electric vehicles became more competitive.
Elon Musk relocated Tesla's headquarters to Texas in 2021 and has ramped up his political visibility, aligning with right-wing figures and policies, sparking resentment in California.
Demonstrators have targeted Tesla showrooms protesting Musk's political affiliations and recent involvement with the Department of Government Efficiency, escalating tensions with California voters.
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