- Tesla CEO Elon Musk has seen vehicle sales tumble, but the electric pickup truck has gained some fans.
From the shorelines of Malibu to the mountains of Mammoth Lakes, there is an unmistakable new constant on the California roadways: Cybertrucks.
According to the latest California New Car Dealers Association (CNCDA) Outlook for 2025, the Tesla Cybertruck zipped up the list of top-selling battery electric and plug-in hybrid vehicles this year to sixth place. Last quarter, the Cybertruck was in eighth place and ranked 12th the quarter before. The metallic-trapezoid truck was a lone bright spot for the electric-vehicle maker in a sea of data, provided by Experian Automotive, that showed significant market erosion for Tesla in California. Total registrations of Tesla cars plummeted 11.6% for the year, and it accounted for 52.5% of zero-emission vehicle (ZEV) registrations in California in 2024, down from 60.1% in 2023.
Overall, new light-vehicle registrations in California dropped 0.3% from 2023 to 2024, while the U.S. market as a whole rose by 3.4%. “All of the decrease in the state market last year was attributable to Tesla, which had an 11.6% decline,” the CNCDA wrote in its outlook report. “Registrations for all other brands increased 1.4%.”
Meanwhile, Bloomberg reported Tesla registrations dropped 63% in France last month, its lowest performance stretch since August 2022.
The sales struggles come as Tesla CEO Elon Musk has taken an active role in President Trump’s administration. Trump tasked the Musk-led Department of Government Efficiency (DOGE) with budget cuts, and the federal advisory body has its share of critics. On Monday, Sen. Elizabeth Warren (D-Mass.) sent a letter to Treasury Secretary Scott Bessent raising alarms about DOGE obtaining access to the Treasury Department’s payment system. On X, the social media platform owned by Musk, DOGE said it has cut contracts worth millions related to diversity, equity, and inclusion, and spending for executive coaching and strategic communication.
Musk’s politics likely caused some of the company’s California business to decline, Bloomberg reported, given Musk’s $288 million contribution to help Trump win office. The Public Policy Institute of California reported the share of Democrats in the state has risen to 46.2% since 2020, compared to the share of Republicans, which rose to 24.7% from 23.8% during the same period.
Regardless of the source of the sales decline, Tesla shareholders have started to question whether Musk’s attention has been peeled away from the EV maker. During the company’s fourth-quarter earnings call last week, the top retail holders sent in questions about how much time Musk could devote to Tesla, given his political work.
One asked, “How much time does Elon Musk intend to spend at the White House and on government activities vs time and effort dedicated to Tesla?” Another wanted to know the impact to the bottom line: “What is the sales lost due to political activities of Elon?”
Tesla did not respond to a request for comment.
To be sure, Tesla’s Model Y remains the bestselling car in the state, and it dominates the luxury compact SUV segment. The Tesla Model 3 clocks in right behind it as the second-best seller, according to the report, but cracks are starting to show. Registrations of the Model 3 dropped 36% for the year. And other brands including Hyundai with the Ioniq 5, Ford with its Mustang Mach-E, and Toyota’s RAV4 are angling to further erode Tesla’s popularity in California. The state is overrepresented among ZEVs at 22%, while the total U.S. market share is 8%.
Among all brands and types, Toyota beat all the competition, the CNCDA reported, growing 4.4% over last year and holding 16.4% of the market share in California. The Toyota Camry holds 11.4% of the market and the Honda Civic and the Tesla Model 3 are tied at 11%.
