California Alt-Fuel Car Sales Remixed
Zero-emission models take a hit, including Tesla’s, while hybrids take off.

Tesla continues to lose market share in California, where zero-emission vehicle sales in general have fallen so far this year.
Pexels/Kindel Media
California, which leads the U.S. in electric-vehicle sales, saw a continued decline in Tesla brand deliveries in the second quarter.
The EV maker, founded in the Golden State before moving to Texas in 2021, had a seventh straight quarter of sales declines there, said the California New Car Dealers Association, citing Experian Automotive data.
The U.S. EV market leader’s California sales fell 18% year-over-year in the first six months of 2025, or a 2.7-point market share drop, according to the Experian numbers. The decline has led a decrease in zero-emission vehicle sales share in the state so far this year from 22% to about 20%.
California had been on track to ban sales of gas-powered vehicles in 2035 by requiring all new-vehicle sales to be zero-emission models, but in May Congress killed Environmental Protection Agency waivers that would have enabled the change. The state has sued the Trump administration in an effort to reverse the decision.
“Dealers are focused on what Californians are buying, not just what policymakers want them to buy,” said CNCDA Chairman and Camino Real Chevrolet President Robb Hernandez in a press release on the data. “It’s clear many consumers still face barriers to going fully electric, whether that’s due to affordability, lack of infrastructure, or range anxiety.”
Hybrid vehicle sales have skyrocketed in the state this year, rising 54% year-over-year and achieving a 19% market share. When sales of all alternative-fuel vehicles – hybrid, purely electric, and fuel-cell – are added up, they comprise 43% of the state’s new-vehicle market, according to the Experian data.
LEARN MORE: Prius Celebrates Silver U.S. Anniversary
Originally posted on Auto Dealer Today
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →