Public protests, political backlash, and a wave of vandalism incidents marked a turbulent 2025 for Tesla in California. Yet when it comes to actual buying behavior, the numbers tell a very different story. Tesla’s Model Y once again emerged as the state’s best-selling new vehicle, underscoring a sharp divide between public sentiment and consumer choices.
According to the California New Car Dealers Association (CNCDA), the Model Y sold 110,120 units in 2025, comfortably beating the second-place Toyota RAV4 by more than 50,000 vehicles. This marks the fourth consecutive year the Model Y has held the top spot in the nation’s largest auto market.
Model Y Dominates, Even as Tesla Sales Slide
While Tesla continues to dominate individual model rankings, the broader picture shows a slowdown. Model Y sales in California fell from 132,636 units in 2023 to 110,120 in 2025. Overall, Tesla registrations in the state declined as well, dropping to 179,656 units in 2025 from 238,589 just two years earlier.
Industry analysts point to multiple headwinds. The rollback of the $7,500 federal EV tax credit under the Trump administration removed a major incentive for buyers. At the same time, political controversies surrounding CEO Elon Musk have chipped away at Tesla’s brand appeal in some regions.
Still, CNCDA President Brian Maas says Tesla benefits from focus. By concentrating production on the Model Y and Model 3, Tesla has avoided spreading itself thin across a wide lineup.
End of the Road for Model S and X
Tesla’s decision to end production of the Model S and Model X reflects a changing competitive landscape. Once standout luxury EVs, the models now face stiff competition from both legacy automakers and newer EV brands.
“They don’t have the field to themselves anymore,” Maas noted. “The Model S was revolutionary a decade ago, but the market has caught up.” The Model Y and Model 3, positioned as more accessible options, continue to drive the bulk of Tesla’s sales.
Toyota Extends Its Grip on California
While Tesla leads in individual models, Toyota remains California’s top-selling automaker overall. Toyota registered 322,068 new vehicles in 2025, up from 288,680 the year before, marking its tenth straight year at number one.
Honda followed with 194,343 units, overtaking Tesla for second place. Analysts credit Toyota’s consistent reputation for reliability, affordability, and a broad lineup that spans hybrids, gas vehicles, and SUVs.
A Market Still Going Strong
Despite political shifts and changing consumer preferences, California remains a powerhouse for auto sales, moving roughly 1.6 to 1.7 million new vehicles annually. That’s about one-eighth of all new cars sold in the U.S.
The takeaway is clear. Protests may be loud, and policies may change, but in California’s car market, buying habits move more slowly. For now, Tesla’s Model Y still rules the road.
