Overview

• Tesla's electric vehicle registrations in California fell 15.1% in Q1 2025, marking the steepest quarterly decline in over a year.
• The company's market share in California dropped from 55.5% to 43.9% year-over-year, as competitors like Honda, Ford, and Chevrolet gained ground.
• Production delays due to retooling for the refreshed Model Y and a lack of significant updates to Tesla's lineup contributed to the downturn.
• Elon Musk's political affiliations and leadership in the Trump administration's Department of Government Efficiency have triggered protests, negatively impacting Tesla's brand in California's progressive market.
• Globally, Tesla's Q1 2025 sales dropped 13%, the lowest in nearly three years, with analysts noting the impact of rising competition and shifting consumer preferences.