In a surprising turn for California’s electric vehicle (EV) market, Tesla sales plummeted 21% in the first quarter of 2025 compared to the same period in 2024, while other EV brands saw a 14% rise, according to the California Energy Commission. This shift has led to a 3% year-over-year decline in overall zero-emission vehicle sales, raising concerns about the state’s ambitious target of having EVs make up 35% of new car sales by 2026, reports the San Francisco Chronicle.

Tesla’s Decline Linked to Political Backlash

The drop in Tesla sales is particularly stark in Democratic-leaning counties, where sales fell most sharply. In the Bay Area, including Alameda, Sonoma, Contra Costa, and San Francisco counties, Tesla sales dropped by over 25%, contributing to a 3% to 4% decline in total EV sales in those regions. Experts point to the polarizing reputation of Tesla’s CEO, Elon Musk, as a key factor.

Musk’s recent political moves, including his role as an advisor to President Donald Trump and his push for right-wing policies, have turned some consumers away. “Consumers are having a hard time separating (Musk), the CEO and Tesla evangelist, from the brand,” said Bill Pearce, a marketing expert at UC Berkeley’s Haas School of Business. Some buyers are even selling their Teslas at a financial loss or displaying “Anti-Elon” bumper stickers to distance themselves from Musk’s image.

Tesla Sales Drop In California Threatens State’s Ev Goals, Experts Warn

Competitive EV Market Gains Ground

While Tesla struggles, competitors are gaining traction. BMW saw a 26% increase in EV sales, Mercedes-Benz rose by 8%, and Ford jumped 24% in the first quarter of 2025 compared to 2024. Chevrolet and Volvo also posted strong gains at 44% and 28%, respectively. Tesla still leads the market with 38,000 units sold, but its share has shrunk significantly—down to just under 40% from nearly half of all new zero-emission vehicle sales in early 2024. “Mercedes and BMW could leap frog Tesla,” Pearce predicted, highlighting their focus on technology, luxury, and comfort as key differentiators. This competitive surge reflects a broader trend: with 147 EV models available in 2025 (up from 105 the previous year), consumers have more options than ever.

California’s EV Adoption Goals at Risk

The decline in Tesla sales poses a challenge to California’s environmental targets. The state aims for zero-emission vehicles to account for 35% of new car sales by 2026, but the recent 3% drop in overall EV sales signals trouble. Brian Maas, president of the California New Car Dealers Association, emphasized the broader issue: “Overall EV market share needs to be growing substantially in order to meet the mandate that the Air Resources Board has set.” He warned that consumer interest isn’t keeping pace with the state’s goals, potentially necessitating a pause in the mandate.

Despite the downturn, California Air Resources Board Chair Liane Randolph remains optimistic. “Despite political headwinds domestically, zero-emission vehicles are the future internationally because they’re fast, fun and cheaper to fuel and maintain,” she said, noting that the market remains strong despite Tesla’s struggles. EVs still made up nearly a quarter of new car sales in California in early 2025, but the state’s regulatory push may face headwinds if Tesla’s decline continues to drag down overall adoption rates.

Industry Shifts and Future Outlook

Tesla’s challenges highlight a maturing EV market where brand loyalty is being tested by consumer values and increased competition. While Tesla’s Model S, as seen in the San Francisco Chronicle’s image, remains a symbol of EV innovation, its dominance is no longer guaranteed. For EV enthusiasts and owners, this shift means more choices but also underscores the need for brands to align with consumer priorities beyond just technology—whether that’s environmental ethos or political neutrality. As California pushes forward with its zero-emission goals, the state’s success may hinge on how quickly other brands can fill the gap Tesla is leaving behind.

Photos courtesy of Tesla