Tesla Gets Slower in Golden State
The EV maker continued to lose market share in the state in Q3

Tesla has been losing ground in the EV market-leading state for two years now.
Pexels
Tesla keeps losing in its former home state.
The electric-vehicle maker’s third-quarter sales in California fell 9% for a total of two consecutive years of declines in the country’s EV adoption leader, according to data compiled by the California New Car Dealers Association.
Tesla’s sales in the state are down 15% so far this year. The decline comes despite a spike in EV sales there and across the country as consumers rushed to lock in federal tax credits that expired Oct. 1. All no-emission vehicle sales comprised about 25% of new-vehicle deliveries in the quarter, bumping total sales by 4%.
Tesla took just 10% of total new-vehicle market share in California for the quarter, the trade group reported.
As EVs are set to wane in the fourth quarter following the end of tax credits – California decided not to replace the federal breaks – hybrids are on the rise. The power train made up 19% of new-vehicle registrations in the quarter and year to date.
"Dealers are seeing real enthusiasm from customers for the latest hybrid and electric technologies, especially as the mainstay brands expand their lineups," said Robb Hernandez, CNCDA chairman and president of Camino Real Chevrolet. "Californians want choices that fit their lives and budgets."
Combined hybrid, plug-in hybrid and no-emission vehicles have made up 44% of the state’s new-vehicle sales so far this year, the group reported.
California had a mandate that all new-vehicle sales be no-emission vehicles by 2035. Congress struck that down this year, though the state has sued the Trump administration over the reversal.
Meanwhile, the state's insurance department also recently took enforcement action against Tesla's insurance arm, claiming mismanagement of consumer claims.
LEARN MORE: California Leading
Originally posted on F&I and Showroom
More Industry

Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →