Tesla sales drop in California while rivals surge past records

According to data released by the California New Car Dealers Association, electric vehicle sales in California showed modest growth in the third quarter, while market leader Tesla experienced a decline.

The state recorded 102,044 electric vehicle sales and leases for the quarter ending Sept. 30, representing a 2% increase from the same period last year. Tesla, which maintains its position as the dominant EV maker in California, saw its sales drop 3.5% to 57,587 vehicles.

Despite the decrease, Tesla still commands more than half of California's EV market. The company's third-quarter performance follows larger declines earlier in the year, dropping 7.8% in the first quarter and 17% in the second quarter. Year-to-date, Tesla's California sales and leases have fallen 12.6%.

The decline in Tesla's sales coincides with heightened competition from other automakers introducing new EVs, particularly at lower price points. Elon Musk, the owner of Tesla, has publicly backed Republican presidential nominee Donald Trump in left-leaning California, which may potentially be a factor. Currently, a bumper sticker that is seen on many Tesla vehicles reads, "I Bought This Before Elon Went Crazy."

Other automakers gained ground in the California market. Kia reported a 64% increase to 10,584 vehicles year-to-date, while Hyundai saw a 30.5% rise with 16,433 vehicles. Ford's EV sales jumped 17.3% to 12,828 vehicles, and BMW posted a 36% increase with 14,610 units.

"More competition is good. EV market share is still increasing," said Josh Bloom, executive director of Veloz, a nonprofit consumer resource for electric vehicles.

Karl Brauer, auto market analyst at iSeeCars.com, noted that Tesla's California sales decline might reflect public reaction to CEO Elon Musk's political stance. "Unfortunately for Elon, a certain amount of his consumer base is not a fan of what's given him a high profile over the past year," Brauer said.

Some Tesla owners have responded by switching brands. Berkeley resident Alexis Tjian sold her Tesla Model Y and purchased a Rivian, citing concerns about product quality and service and disagreement with Musk's political inclinations and public statements. "We said we're done. He doesn't align with our values anymore," Tjian said.

Not all manufacturers saw growth. General Motors' Chevrolet EV sales fell 48% to 8,817 vehicles. However, the recent launch of two new crossovers, the Equinox EV and Blazer EV, could boost future sales. Trade journal Automotive News reports both vehicles have entered the top 10 list of best-selling EVs nationally.

The overall pace of EV adoption in California has slowed compared to previous years. Market share for battery electric and plug-in hybrid vehicles rose from 7.6% in 2020 to 12.2% in 2021, 19.1% in 2022 and 24.9% in 2023. In the first nine months of this year, that share increased marginally to 25.6%.

The slowdown comes as California pursues ambitious EV adoption goals. Gov. Gavin Newsom has mandated that EVs and plug-in hybrids comprise 35% of state car sales by 2026, increasing to 100% by 2035.

Bloom remains optimistic about EV sales momentum in California. "From our perspective, we're continuing to see remarkable sales momentum across California," he said, adding, "We also understand that any high-tech market has ebbs and flows."

Infrastructure challenges persist as a barrier to wider adoption. Brauer identified California's public charging network as a major obstacle, noting Tesla's reputation for reliable charging stations contrasts with other public charging options that face overcrowding and reliability issues.

Describing a recent trip in a rented Hyundai Ioniq 5, Brauer reported spending four hours searching for a working charger and waiting in line to gain enough power for a 50-mile journey. "That was not a fun four hours," he said, adding that without improvements to public charging, "I will never buy an electric car."