Tesla Model Y Continues to Lead California Sales Despite Challenges
In 2025, the Tesla Model Y maintained its position as California’s best-selling new vehicle for the fourth consecutive year, according to data from the California New Car Dealers Association (CNCDA). Despite facing protests against CEO Elon Musk and a temporary halt in production and deliveries due to an updated variant, the Model Y outsold its closest competitor by over 50,000 units, as reported by KRON4.
The Model Y recorded 110,120 registrations in California in 2025, surpassing rivals like the Toyota RAV4 and Toyota Camry. However, sales of the Model Y have shown a downward trend year-over-year, possibly impacted by the discontinuation of the federal $7,500 EV tax credit, which had previously incentivized electric vehicle purchases.
CNCDA President Brian Maas acknowledged Tesla’s brand appeal but also highlighted the controversies surrounding Musk as potential factors affecting consumer perception. Despite facing anti-Musk protests and incidents of vandalism directed at Tesla vehicles, the Model Y and Model 3 have continued to perform well in California, indicating the quality and value of these models.
Looking ahead, Tesla’s decision to retire the Model S and Model X in favor of focusing on the Model Y and Model 3 may lead to increased sales of the latter models. Maas suggested that the Model S may have become less appealing to customers, making it logical for Tesla to prioritize the more affordable and popular Model Y and Model 3.