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California EV Sales Sink to Four-Year Low as Tesla Registrations Fall 24%

The loss of the $7,500 federal tax credit removed a key price break that reset demand in the nation’s bellwether EV market.

Overview

  • California’s auto dealers group, which released its Q1 report Tuesday, said zero‑emission registrations fell about 40% to 57,111 and captured 13.7% of the market.
  • Tesla registrations dropped 24.3% to 31,958, yet the brand grew to about 56% of the smaller EV market as rivals fell faster.
  • Non‑Tesla brands saw steep declines, including Rivian down 35.9%, Mercedes‑Benz down 81.9%, and Chevrolet down 59.6%, while Lucid rose 37.1% on new Gravity SUV momentum.
  • Hybrid vehicles gained share to 20.9% and gasoline models climbed to 61.1%, as total new registrations across all powertrains fell 8.9% to roughly 416,810.
  • Analysts link the drop to the Sept. 30 tax‑credit expiry and higher borrowing costs, a reset in a state that accounts for about 30% of U.S. EV sales and that now complicates automaker plans and 2035 clean‑car goals.