Tesla’s registrations in California crashed 24.3% in the first quarter of 2026, with the automaker selling over 10,000 fewer vehicles in the state compared to the same period last year. The data comes from the California New Car Dealers Association’s (CNCDA) Q1 2026 Auto Outlook report, which also reveals that the state’s overall zero-emission vehicle (ZEV) market share has plunged to just 13.7% — the lowest level since Q4 2021. Tesla’s California decline deepens According to the CNCDA report, Tesla registered 31,958 vehicles in California during Q1 2026, down from 42,211 in Q1 2025. That’s a decline of 10,253 units — a significant drop considering that Q1 2025 was already a weak quarter for Tesla due to the Model Y changeover that constrained production and led to a 15% sales slide. Tesla’s overall California market share fell from 9.2% to 7.7%. The Model Y remained the top-selling light SUV in the state with 22,907 registrations and a 53.3% share of the luxury compact SUV segment, but those numbers are down considerably from a year ago. The Model 3 registered 5,688 units. Advertisement - scroll for more content California’s EV market is in freefall The broader picture is even more alarming. Total ZEV registrations in California dropped 40.2% year-over-year in Q1 2026, falling from 95,520 to just 57,111 units. ZEV market share plunged from around 21% in 2025 to just 13.7% — a level the state hasn’t seen in over four years. The carnage was widespread among EV brands. Mercedes-Benz ZEV registrations collapsed 81.9%, Chevrolet dropped 59.6%, BMW fell 58.9%, Ford declined 58.8%, Kia dropped 48.2%, and Rivian plunged 35.9%. Even Hyundai, which has been gaining ground in the EV market, saw a 30.4% decline in ZEV registrations. Meanwhile, hybrids surged to 20.9% market share — now exceeding ZEVs — and gas-powered vehicles climbed back to 61.1% of registrations, up from 54% in 2025. The shift is unmistakable. The primary culprit is clear: the expiration of the $7,500 federal EV tax credit on September 30, 2025. As we reported earlier this year, new EV sales nationally dropped 28% in Q1 2026 as the impact of losing the tax credit rippled through the market. California, as the nation’s largest EV market accounting for 29.6% of all US ZEV registrations, is feeling it acutely. Lucid is a rare bright spot Among all this destruction, Lucid stands out as one of the very few winners. The automaker’s California registrations surged 37.1%, rising from 959 to 1,315 units, making it the top-performing brand in the state by percentage growth. The Gravity electric SUV, which drove a production surge in Q4 2025, is clearly finding buyers in its home state. Only six other brands posted increases in California: Mitsubishi (+22.6%), Genesis (+10.2%), Lexus (+7.3%), Volvo (+7.1%), Chrysler (+4.1%), and Toyota (+3.5%). Notably, the brands posting gains are mostly selling hybrids and gas vehicles — Lucid is the only pure EV brand in the group. Electrek’s Take I can already hear Tesla shareholders rejoicing about the fact that Tesla didn’t decline as much as the broader BEV market in California. Tesla’s ZEV market share actually rose from 44.2% to 56.0% as competitors fell off a cliff even harder. Fair enough — Tesla’s 24% decline looks almost modest compared to the 40% crash across the entire ZEV market. But as someone who believed in Tesla’s original mission to accelerate the transition to sustainable energy, this doesn’t do much for me. Tesla registered over 10,000 fewer vehicles in California than it did in Q1 2025 — a quarter when the company was already production-constrained due to the Model Y changeover. That’s bad. That’s the direct impact of the federal tax credit going away. The broader numbers are devastating for the EV transition. California’s ZEV market share fell from 21% to 13.7% — wiping out years of progress. Gas vehicles are back above 61% of the market. Hybrids now outsell EVs in the state. This is what happens when you remove the single most effective policy tool for EV adoption. Tesla gaining a larger share of a shrinking pie is not a victory for anyone who cares about the mission. Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.