The Tesla Model Y continues to dominate the California auto market in 2025, securing its position as the state’s best-selling new vehicle for the fourth consecutive year. Despite the end of the federal EV tax credit, production pauses tied to an updated Model Y variant, and political controversy surrounding CEO Elon Musk, the electric SUV maintained a commanding lead.
According to data from the California New Car Dealers Association (CNCDA), the Model Y outperformed its nearest competitor by nearly 50,000 units in 2025.
Top 5 Best-Selling Vehicles in California – 2025
| Rank | Vehicle | 2025 Registrations |
|---|---|---|
| 1 | Tesla Model Y | 110,120 |
| 2 | Toyota RAV4 | 65,604 |
| 3 | Toyota Camry | 62,324 |
| 4 | Tesla Model 3 | 53,989 |
| 5 | Honda Civic | 53,085 |
The Tesla Model Y recorded 110,120 registrations, dramatically outpacing the Toyota RAV4 and Toyota Camry. The Tesla Model 3 also maintained a strong presence, ranking fourth statewide.
Tesla Model Y Year-Over-Year Sales Trend
While the Model Y retained its top ranking, year-over-year registrations have declined since 2023.
| Year | Model Y Registrations | Year-Over-Year Change |
|---|---|---|
| 2023 | 132,636 | - |
| 2024 | 128,923 | -2.8% |
| 2025 | 110,120 | -14.6% |
The decline reflects multiple factors, including an early-2025 production pause during the transition to the updated Model Y variant, as well as the expiration of the federal $7,500 EV tax credit.
Total Tesla Sales in California
Overall Tesla registrations in California have also declined over the past three years.
| Year | Total Tesla Registrations | Year-Over-Year Change |
|---|---|---|
| 2023 | 238,589 | - |
| 2024 | 202,865 | -15.0% |
| 2025 | 179,656 | -11.4% |
The expiration of the federal EV incentive removed a major driver of electric vehicle demand. Additionally, broader economic pressures and shifting consumer sentiment likely influenced purchasing behavior.
Political Controversy and Brand Impact
California experienced several protests related to Elon Musk in 2025, along with isolated reports of Tesla vehicles being vandalized. CNCDA President Brian Maas noted that Tesla still benefits from strong brand recognition and status appeal, particularly in parts of the Bay Area. However, he acknowledged that political controversy may be influencing some buyers.
Despite these headwinds, both the Tesla Model Y and Model 3 remained among the top five best-selling vehicles in the state, demonstrating continued consumer confidence in Tesla’s core products.
What’s Next for Tesla in California?
Tesla has announced it is sunsetting the Model S and Model X, shifting focus toward its higher-volume vehicles — the Model Y and Model 3. This consolidation strategy could streamline production and potentially redirect demand toward Tesla’s more affordable models.
With California remaining the largest EV market in the United States, the performance of the Model Y and Model 3 in 2026 will be closely watched. While sales have moderated, Tesla’s dominance in the state remains clear.
For now, the numbers are definitive: the Tesla Model Y continues to lead California auto sales in 2026.
