Report reveals Tesla's decline could signal the end of a key era: 'This downward trajectory ... is a lasting trend'

Tesla registrations in California are slipping, but the brand still remains top dog in the state among electric vehicles, according to Teslarati.

The news comes from a 2025 outlook report published by the state's New Car Dealers Association (CNCDA) during a time when Tesla is experiencing steep sales and stock drops as loads of EV customers shun the brand in light of CEO Elon Musk's social opinions and political activity.

"Tesla's troubles continue to worsen as Californians are giving the cold shoulder to the direct-to-consumer automaker (and controversial owner, Elon Musk)," said the report. "Registrations show a massive decline of 15.1 percent through March vs. this time last year. A year and a half of continuous quarterly declines proves this downward trajectory for Tesla is a lasting trend. The company's market share also dropped by 11.6 percent at the end of Q1, now holding less than half of the California Zero Emission Vehicle (ZEV) market for the year."

Tesla still came in third place among all car brands in California, with 9.1% market share. Tesla's Model 3 was also the most popular passenger car model in the state for the first quarter, per the report.

By the CNCDA's count, EVs accounted for a 20.8% share of sales statewide, which is a dip from 22% at the same time last year. California has claimed 28.9% of America's new ZEV registrations so far this year and 8.5% of the total market.

Even with these bumps in the road, electric vehicles are needed to support a greener future. Light-duty vehicles produce a large chunk of America's pollution, which contributes to destructive weather events, ocean warming, and declines in personal health.

Watch now: How bad is a gas stove for your home's indoor air quality?

EVs have many benefits beyond the environment. They're cheaper to operate, both due to a less expensive power source and reduced maintenance. Federal rebates are also available for the time being to help get over the hump of initial investments.

Besides Elon Musk's DOGE activity tarnishing the Tesla brand, erratic tariffs make it difficult to predict how auto manufacturing as a whole will be affected.

"The potential overhaul of U.S. trade policy has added significant unknowns into the new vehicle sales outlook," said the report. "Initial reports indicate a surge in new vehicle purchases in the months of March and April in anticipation of the implementation of these tariffs, however it remains to be seen if they will result in higher vehicle prices."

What do you think of Tesla and Elon Musk?

Elon is the man 🥰