• Tesla's EV registrations in California fell by 15.1% in Q1 2025.
• The company's market share in California dropped from 55.5% to 43.9% year-on-year.
• CEO Elon Musk's political visibility has increased backlash against the brand.
• The Model Y remains the best-selling EV but saw a 30% sales drop.
• Analysts predict continued declines based on competition and consumer wait times for newer models.

Tesla's electric-vehicle registrations in California dropped 15.1% during the first quarter of 2025, according to data from the California New Car Dealers Association, signaling an accelerated decline for the automaker in this crucial market. This decline is part of a broader trend, as Tesla's global quarterly sales also fell 13%, marking the lowest numbers in nearly three years due to rising competition and customer hesitance in awaiting refreshed models such as the popular Model Y, according to Channel News Asia.

In California, Tesla’s share of the electric vehicle market decreased to 43.9% from 55.5% the previous year, despite the Model Y retaining its status as the best-selling EV. However, sales of this model plummeted approximately 30% year-over-year, showcasing the challenges faced by Tesla amid strong competition and an aging product lineup, reports Business Insider.

The negative sales trend is further compounded by CEO Elon Musk's political activities, which have prompted backlash from consumers and protests against his recent affiliations with certain U.S. government initiatives. As a result, Tesla showrooms have seen increased demonstrations in California, reflecting a discontent with leadership decisions that have negatively impacted brand perception, according to Reuters.

Analysts attribute much of this sales decline to consumer anticipation for newer, more affordable versions of the refreshed Model Y. The California New Car Dealers Association has projected that overall vehicle registrations might decrease by 2.3% this year, citing adverse U.S. trade policies as a contributing factor, as reported by Channel News Asia.