For years, Tesla has been a leader in the electric vehicle market. The company’s products have pushed envelopes, raised the bar, and generated unprecedented buzz – along with booming sales. However, the days of Tesla’s total dominance in the EV world may be drawing to a close. According to a report from the California New Car Dealers Association, the company’s deliveries in The Golden State last year tumbled by a double-digit percentage.
A Worrying Decline
Tesla sold 203,221 vehicles in California last year compared to 230,010 in 2023. That’s a decline of 11.6 percent and nearly 27,000 examples. Of course, other automakers also saw their zero-emissions vehicle registrations fall as well; Chevrolet dropped by 24.0 percent, Polestar sagged by 37.3 and Volkswagen collapsed by 55.6 percent, to name a few rival manufacturers.
Naturally, this sales decline impacted Tesla’s share of the zero-emissions vehicle market. The company hit 60.1 percent in 2023, though that dropped to 52.5 last year, a decline of 7.6 percent. Despite this loss, Tesla was still far and away the biggest EV seller in California. Hyundai came in second place last year, while BMW was third.
Despite Tesla’s seemingly fading fortunes, zero-emissions vehicle market share actually went up in California, hitting 22 percent in 2024. That’s a 0.3 percent increase compared to the prior year.
Tesla’s declining showroom performance in 2024 could be indicative of a broader trend. According to the California New Car Dealers Association’s end-of-year outlook report, “Tesla’s dominance in the electric vehicle market continues to falter as the brand reported its fifth consecutive quarterly registration decline.” Additionally, “Amongst all brands, Tesla’s share of California’s market is 11.6 percent, down from 13 percent in 2023.” The Capital T may still be on top, but it’s also under siege by a horde of rival automakers.
There’s Still A Lot To Be Proud Of
Last year’s sales and market share declines should worry Tesla, as California is far and away the most important state for EVs in the U.S., but it’s not all bad news. The company’s Model Y SUV was the best-selling EV in the state, racking up nearly 129,000 sales; this vehicle is also the most popular EV in the world.
In second place was the Tesla Model 3 sedan, which accounted for more than 53,000 sales, miles ahead of the third-place finisher, Hyundai’s Ioniq 5. Fewer than 17,000 of these battery-powered hatchbacks were sold in California in 2024.
Surprisingly, the Cybertruck has been something of a dud for Tesla. Only around 9,000 of them were sold in California last year, but that still makes this vehicle more popular than any other all-electric pickup in the state. The second-place finisher was the Ford F-150 Lightning, with 5,590 sold.
Tesla remains the EV leader in California, though its dominance is under threat. It will be interesting to see if the company can maintain this position in the coming years as rival companies improve – and diversify – their all-electric offerings.
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