The Tesla Model Y Continues to Dominate California’s Car Market
Despite facing challenges and controversies, the Tesla Model Y has maintained its position as California’s best-selling new vehicle for the fourth consecutive year in 2025. According to data from the California New Car Dealers Association (CNCDA), the Model Y outperformed its closest competitor by a significant margin, with 110,120 registrations in the state.
The Toyota RAV4 and Toyota Camry followed behind with 65,604 and 62,324 units sold, respectively. The Tesla Model 3 secured the fourth spot with 53,989 sales, surpassing the Honda Civic at 53,085 units.
Despite its continued success, Model Y sales have experienced a decline year-over-year. The removal of the federal $7,500 EV tax credit, which had been a significant incentive for electric vehicle purchases, contributed to this downturn in demand.
CNCDA President Brian Maas pointed out that Tesla’s brand reputation and the appeal of owning a Tesla vehicle have been affected by the controversies surrounding CEO Elon Musk. Despite facing protests and reports of vandalism against Tesla owners, the Model Y and Model 3 have remained popular choices in California, showcasing the quality and value of these electric vehicles.
Looking ahead, Tesla’s decision to discontinue the Model S and Model X in favor of focusing on the Model Y and Model 3 may lead to an increase in sales for these models. With the more expensive vehicles phased out, consumers are likely to gravitate towards the more affordable and practical options offered by the Model Y and Model 3.
As California’s automotive landscape evolves, it is clear that Tesla’s commitment to innovation and sustainability continues to resonate with consumers, solidifying its position as a leader in the electric vehicle market.