Tesla's California car sales fell by 24.3% in Q1 2026, with the automaker registering over 10,000 fewer vehicles compared to the same period last year. The California New Car Dealers Association's (CNCDA) report also revealed that the state's overall zero-emission vehicle (ZEV) market share has dropped to 13.7%, the lowest level since Q4 2021. Tesla registered 31,958 vehicles in California during Q1 2020, down from 42,211 in Q 1 2025. The Model Y remained the top-selling light SUV in the state with 22,907 registrations and a 53.3%. Total ZEV registrations in California dropped 40.2% year-over-year in QQ 2026. The decrease in ZEV market share was attributed to the expiration of the $7,500 federal EV tax credit on September 30, 2025.