Overview
- The California New Car Dealers Association, which reported Tuesday, said zero-emission vehicle registrations fell 40% year over year to 57,111 in Q1 2026, pushing market share down to 13.7%, the lowest since late 2021.
- Tesla recorded 31,958 California registrations in the quarter, down from 42,211 a year earlier, a decline of 10,253 vehicles, though the Model Y and Model 3 still ranked among the state’s best-selling electric models.
- Dealers and analysts link the pullback to the September 30, 2025 end of the $7,500 federal EV tax credit, with high loan rates and near-record vehicle prices further cooling demand.
- The powertrain mix shifted as hybrids rose to 20.9% of registrations and gasoline vehicles climbed to 61.1%, leaving fully electric cars with a smaller share than last year.
- Brand results diverged as Rivian fell 35.9% in California while Lucid grew 37.1% on early Gravity SUV momentum, and the dealers group warned the new-vehicle market could weaken further as Tesla reports earnings Wednesday.