Tesla’s sales in California fell sharply in 2024, marking its first annual decline in the state as competition intensifies.
According to the California New Car Dealers Association (CNCDA), Tesla’s deliveries dropped 11.6%, with nearly 27,000 fewer vehicles sold. The company’s share of the state’s electric vehicle market declined from 60% in 2023 to 52.5%, though it remains the leading brand.
Despite Tesla’s downturn, California’s overall EV market continued to grow, rising 1.2% last year. When excluding Tesla, the state’s EV market saw a 20% increase, bringing electric vehicles to a 22% share of all new car registrations.
Tesla’s struggles in California reflect its broader challenges. The automaker recorded its fifth consecutive quarterly registration decline in Q4 2024, with a 7.8% drop. Its total market share in the state also fell to 11.6%, down from 13% in 2023.
The decline follows Tesla’s first global annual delivery drop in a decade. Analysts point to growing competition, slowing demand, and CEO Elon Musk’s increasing political involvement as potential factors contributing to the company’s struggles.
