Tesla Sales Power Wanes in Calif.
Dealer group says EV maker’s sales keep falling, model falls from top spot.

Pexels/Matt Weissinger
Tesla’s sway in California’s car culture may be plateauing, according to the state’s auto dealer group.
In its first-quarter report, the California New Car Dealers Association said Tesla registrations fell for the second quarter in a row in the state Tesla used to be headquartered in. The latest decline was about 8% after a 10% drop in the fourth quarter.
The association said traditional automakers are filling the gap left by waning Tesla sales, pointing out that franchised dealers represent 66% of alternative powertrain vehicle sales. Tesla’s sales are direct.
Association Chairman David Simpson, who owns three Orange County dealerships, contrasted local auto dealers with Tesla, saying the former have trust bonds with the communities they serve.
"This is why we believe the Tesla sales model is ineffective, layoffs are happening, and people are generally dissatisfied with their level of service. We take pride in our dealerships, and it shows.”
Toyota held onto its sales lead in the state in the first quarter with a 9% registrations bump. By individual model, the Toyota Camry took the top spot among passenger cars from the Tesla Model 3, which fell to third, the association said.
LEARN MORE: GM, Tesla Get Loyalty Nods
Originally posted on Auto Dealer Today
More Industry

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 →
First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →