Tesla’s California sales crash 24% as state’s EV market plunges to lowest since 2021

Tesla’s registrations in California crashed 24.3% in the first quarter of 2026, with the automaker selling over 10,000 fewer vehicles in the state compared to the same period last year.

The data comes from the California New Car Dealers Association’s (CNCDA) Q1 2026 Auto Outlook report, which also reveals that the state’s overall zero-emission vehicle (ZEV) market share has plunged to just 13.7% — the lowest level since Q4 2021.

Tesla’s California decline deepens

According to the CNCDA report, Tesla registered 31,958 vehicles in California during Q1 2026, down from 42,211 in Q1 2025. That’s a decline of 10,253 units — a significant drop considering that Q1 2025 was already a weak quarter for Tesla due to the Model Y changeover that constrained production and led to a 15% sales slide.

Tesla’s overall California market share fell from 9.2% to 7.7%. The Model Y remained the top-selling light SUV in the state with 22,907 registrations and a 53.3% share of the luxury compact SUV segment, but those numbers are down considerably from a year ago. The Model 3 registered 5,688 units.