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SEARCHZero-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.
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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.
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Originally posted on Auto Dealer Today
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