Tesla has now seen seven quarterly registration declines reported in California, dragging down the overall zero-emission vehicle (ZEV) market in the state, a new report shows.
The California New Car Dealers Association released its Q2 2025 California Auto Outlook Report, analyzing new vehicle registration trends for the first half of the year.
The data in the report, sourced from Experian Automotive, shows Tesla had an 18.3% drop in registrations compared with the first half of 2024. The authors of the CNCDA report say the direct-to-consumer automaker’s lack of a robust dealership network for sales support may have contributed to a 2.7-point decline in its market share year-to-date.
The Tesla decline pulled down the overall ZEV share in the state, which fell to 18.2% this quarter and 19.5 percent year-to-date, down from 22.0% in 2024, according to the report.
California’s ZEV market is still far more robust than the national market. The report shows California’s ZEV market share stands at 19.5% compared with 7.8% for the entire U.S.
The report shows hybrid vehicles are gaining momentum. Registrations for hybrids climbed 54% so far this year, and now makeup 19.2% of the market (181,192 registrations). Internal combustion engine vehicles comprise 57.5% the market in the state, the report shows.
Toyota leads the California market with a 17.3% percent share, followed by Honda (11%), Tesla (8.8%), Ford (7.7%) and Chevrolet (6.6%). Top-selling passenger cars so far this year include the Tesla Model (12.6% share), followed by the Toyota Camry (12.2%) and the Honda Civic (11.5%).
Leading light truck models include the Tesla Model Y (6.3% share), Toyota RAV4 (4.9%) and Honda CR-V (4.3%), the report shows.
Topics
California
Tesla
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