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Tesla sales fell in California in the fourth quarter of 2024, bringing down overall sales of the popular vehicle further for the year, according to a new report.

The California New Car Dealers Association released its covering 2024 vehicle registrations in the state, which summarizes new vehicle registrations in the state and predicts anticipated yearly sales. The association used Experian Automotive as the data source for its outlook.

Tesla’s dominance in the electric vehicle market continues to drop, with the brand reporting its fifth consecutive quarterly registration decline. Tesla’s registrations fell 7.8% in the fourth quarter of 2024, contributing to an overall 11.6% decline in 2024. The company’s market share also dropped by 7.6 points in 2024. It now holds 52.5% of the Zero Emission Vehicle (ZEV) market for the year. Amongst all brands, Tesla’s share of California’s market is 11.6%, down from 13% in 2023, according to the report.

California’s new vehicle registrations among all brands remain stable: 1,759,141 light vehicles were registered in California in 2024, representing a 0.3% drop from 2023, according to the report.

New vehicle registrations in the fourth quarter rose by 4.8% compared to the same period in 2023, but the first quarter of 2025 is expected to remain mostly flat.

The report shows projections for 2025 are optimistic, with registrations expected to rise slightly to 1.80 million for the year.

Other findings in the report include:

• The most significant trend to emerge this quarter is the shift in consumer preference within the alternative powertrain sector. ZEV market share for all brands dipped to 21.3% in the fourth quarter, down from 23.7% in the previous quarter. Annual California ZEV totals reached 22%.
• Registrations for all alternative powertrains reached 40.2% for the year and 42.2% in the fourth quarter. Hybrids made up the ground lost by ZEVs, gaining 2.4% in Q4, matching a 2.4-point decline in ZEV registrations. This shift suggests that California consumers may be looking to transition gradually from internal combustion engines (ICE) to fully electric vehicles, with hybrids emerging as an increasingly popular option.
• Among all powertrains and brands, Toyota is top in California, with 289,258 registrations in 2024, a 4.4% increase from last year. The brand now has 16.4% of California’s market share.
• Four brands improved their registrations by 20% (or more) in 2024: Lincoln (27.6%), Land Rover (22%), Cadillac (21.7%) and Buick (21.7%).

Topics California Trends Auto Tesla