Tesla sales in California have fallen by 24.3% in the first quarter of 2026, indicating a broader decline in electric vehicle (EV) demand within the state. According to the California New Car Dealers Association, electric vehicles’ market share has decreased to 13.7% in the quarter, marking its lowest point since 2021. In comparison, the market share for EVs during the same period last year was 20.9%.
EV Market Share Crashes in California
The California New Car Dealers Association released its outlook for the state’s auto sector during the first quarter of 2026. Key findings include:
- Electric vehicles’ market share declined to 13.7% in the quarter, its lowest since 2021.
- The market share for EVs during the same period last year was 20.9%.
Tesla Sales Fall Considerably
Tesla reported 31,958 units sold in California, representing a sales deficit of more than 10,000 units from last year’s 42,211 units sold during the same period. However, Tesla’s Model Y SUV continued to be the best-selling EV in the state, with 22,907 units sold. Additionally:
- Tesla’s market share in California grew to 56% from last year’s 44.2%.
- Tesla’s Model 3 sold over 5,688 units, completing the bulk of the EV maker’s sales.
- The Cybertruck failed to make it into the top 25 best-selling cars in the state.
Elon Musk Addresses Critics
Tesla CEO Elon Musk recently responded to critics as the EV maker’s Model Y and Model 3 remained at the top of the sales charts, with over 101,000 sales combined in the first quarter in the U.S. However, this was also coincided by a decline in Chinese retail sales, which fell over 16% year-over-year despite an increase in Tesla’s wholesale figures in the market.
Disappointing First-Quarter Deliveries
The EV giant reported disappointing first-quarter deliveries, with 358,000 units delivered out of the over 408,000 units Tesla manufactured. This indicates that over 50,000 units are sitting unsold in the company’s lots at the moment.
Price Action
Tesla’s stock price declined 1.55% to $386.15 at market close on Tuesday. According to rankings, Tesla offers satisfactory Momentum but poor Value, providing a favorable price trend in the Long term.