The Tesla Model Y has once again secured its position as California’s best-selling new vehicle, marking its fourth consecutive year at the top in 2025. This achievement comes despite significant public backlash directed at CEO Elon Musk and production pauses experienced early in the year due to a model update.
Model Y Outperforms Competition Significantly
Data released by the California New Car Dealers Association (CNCDA) indicates the Model Y’s remarkable market dominance. It sold over 50,000 units more than its closest rival. In 2025, the Model Y registered 110,120 units in California. The second and third best-selling vehicles were the Toyota RAV4 with 65,604 registrations and the Toyota Camry with 62,324, respectively. The Tesla Model 3 also featured in the top ranks, securing fourth place with 53,989 sales, followed by the Honda Civic at 53,085.
Sales Trends and Market Influences
Despite its leading position, the Model Y has experienced a year-over-year decline in registrations. Sales dropped from 132,636 in 2023 to 128,923 in 2024, and further to 110,120 in 2025. Similarly, overall Tesla sales in California saw a decrease, falling from 238,589 in 2023 to 202,865 in 2024, and then to 179,656 in 2025. This slowdown coincides with the expiration of the federal $7,500 EV tax credit, a significant incentive that had previously bolstered electric vehicle demand.
Consumer Sentiment and Brand Perception
Brian Maas, President of CNCDA, commented on the market dynamics, stating, “Tesla has a few advantages. Tesla, as a brand, has a status, cache, so I think folks in certain parts of the Bay. Owning a Tesla is a thing. I think that’s breaking down over time, especially given the political controversies surrounding Mr. Musk.” The year 2025 saw multiple protests against Elon Musk in California, with reports of consumer-owned Teslas being vandalized. The continued strong performance of the Model Y and Model 3 is therefore seen as a testament to the vehicles’ quality and appeal.
Future Outlook for Tesla Sales
Tesla’s sales figures for the Model Y and Model 3 could potentially see an upturn this year, following the company’s decision to phase out its more expensive models, the Model S and Model X. “Maybe the Model S has outlived its usefulness in terms of attracting customers. It’s no surprise the ones they kept are the Model Y and Model 3,” Maas added. This strategic shift may drive more consumers toward the popular Model Y and Model 3.
