TSLA390.6004.18001%
GM79.2300.18%
F12.715-0.065%
RIVN17.7650.615%
CYD42.900-0.81%
HMC24.645-0.295%
TM200.530-3.44%
CVNA407.1006.18%
PAG159.130-1.57%
LAD277.100-2.79%
AN204.325-0.985%
GPI342.215-2.475%
ABG202.340-5.65%
SAH69.610-0.46%
TSLA390.6004.18001%
GM79.2300.18%
F12.715-0.065%
RIVN17.7650.615%
CYD42.900-0.81%
HMC24.645-0.295%
TM200.530-3.44%
CVNA407.1006.18%
PAG159.130-1.57%
LAD277.100-2.79%
AN204.325-0.985%
GPI342.215-2.475%
ABG202.340-5.65%
SAH69.610-0.46%
TSLA390.6004.18001%
GM79.2300.18%
F12.715-0.065%
RIVN17.7650.615%
CYD42.900-0.81%
HMC24.645-0.295%
TM200.530-3.44%
CVNA407.1006.18%
PAG159.130-1.57%
LAD277.100-2.79%
AN204.325-0.985%
GPI342.215-2.475%
ABG202.340-5.65%
SAH69.610-0.46%

Tesla, EV registrations plummet in California as hybrids surge

New electric vehicle registrations dropped sharply in California, as hybrids surged past zero-emission vehicles for the first time.

Tesla registrations fell 24% in California as hybrids surged past EVs. What the data means for dealers heading into the rest of 2026.

On the Dash:

  • Tesla registrations dropped 24%, even as the Model Y remained the state’s top seller.
  • EV market share fell to a four-year low in California at 13.7% in Q1 2026.
  • Hybrids now outsell EVs in California, capturing 21% of the new vehicle market.

Tesla vehicle registrations in California tumbled 24% in the first quarter of 2026. Consumers increasingly embraced hybrid vehicles as electric vehicle momentum continued to slow. That’s according to new data from the California New Car Dealers Association (CNCDA).

California sets the pace for national EV trends

California has long been considered the nation’s leading indicator for electric vehicle adoption. The state recorded a 40% drop in total zero-emission vehicle (ZEV) registrations compared to the same period last year. ZEV market share fell to 13.7%, the lowest level since the fourth quarter of 2021. That figure sits well below the 22% peak recorded just two years ago.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Tesla’s Model Y still dominates 

Tesla’s Model Y remained California’s best-selling vehicle of any kind. The model posted 22,907 registrations and commanded 53% of the luxury compact SUV segment. Still, the brand’s overall decline signals weakening demand even for the state’s top nameplate. The Honda CR-V followed with 12,654 registrations. The Toyota RAV4 recorded 12,003.

Hybrids gain ground over EVs

Hybrid vehicles gained serious momentum as ZEV demand dipped. Hybrids topped 87,000 registrations in the first quarter, capturing roughly 21% of the market. The Toyota Camry hybrid climbed to number two on the state’s best-sellers list, trailing only the Model Y.

​​California proposes new EV rebates

Now that federal EV incentives have expired, California Governor Gavin Newsom has proposed a $200 million state tax rebate program. The goal is to offset lost federal credits and bolster slumping sales. The program requires matching funds from automakers, includes income limits, and covers both new and used EVs.

More from Market Reports
February 2026 U.S. auto sales projected at 1.19M units, 15.6M SAAR, with BEV share at 5.6% and average prices at $46,303.

February 2026 U.S. auto sales projected at 1.19 million units as EV demand cools

- March 4, 2026
On the Dash: February’s 1.19 million units and 15.6 million SAAR signal modest growth amid affordability pressures. BEV share at 5.6%, and changing incentives require careful EV inventory and pricing...
U.S. light vehicles fall 4% in January amid incentive changes

U.S. light vehicles fall 4% in January amid incentive changes

- February 17, 2026
On the Dash: Dealers face lower sales volumes and reduced foot traffic due to seasonal disruptions and overall market softness. Rising incentive rates provide opportunities for dealers to stimulate demand...
Car buying satisfaction

Car buyer journey study shows record satisfaction in 2025

- February 9, 2026
Car buyer journey study shows record satisfaction as digital tools and AI reshape vehicle purchases On the Dash: Car buyer satisfaction hit a record high in 2025, driven by improved transparency,...
inventories, Cox Automotive, Inventory

U.S. auto inventories stabilize entering 2026, Cox Automotive reports

- January 21, 2026
On the Dash: Industrywide vehicle supply has returned to near-normal levels after prolonged oversupply in 2025. Toyota and Lexus remain tightly stocked, while Volkswagen and several Stellantis brands continue to...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.