California EV Sales Plummet 40% in Q1 2024 as Tesla Maintains Dominance Despite Losses

California’s EV Market Shrinks 40% in Q1 2024

California’s zero-emission vehicle (ZEV) market experienced a sharp decline in the first quarter of 2024, with sales dropping 40.2% year-over-year. A total of 57,111 ZEVs were sold in the state during Q1 2024, down from 95,520 in the same period last year. This decline occurred alongside an 8.9% drop in overall new car registrations, which fell from 457,525 to 416,810.

Tesla’s Market Share Grows Despite Volume Loss

Tesla’s first-quarter registrations fell 24.3% to 31,958 units, down from 42,211 in Q1 2023. While Tesla shed the most volume in raw numbers, its market share within the ZEV segment grew from 44.2% in Q1 2023 to 56% in Q1 2024. This shift was driven not by Tesla’s growth but by the collapse of competitors.

Nearly Every Major Automaker Sees Double-Digit Declines

The decline in Tesla’s sales was severe, but most other automakers fared far worse. The following brands experienced the most dramatic drops in ZEV registrations:

• Acura: Down 99.1% (from 1,279 to 11 units)
• Audi: Down 90.9% (from 2,319 to 210 units)
• BMW: Down 58.9% (from 5,301 to 2,180 units)
• Chevrolet: Down 59.6% (from 4,650 to 1,875 units)
• Ford: Down 58.8% (from 5,750 to 2,374 units)
• Honda: Down 81.6% (from 4,500 to 832 units)
• Dodge: Down 79.7% (from 80 to 16 units)

Hyundai performed comparatively better, with a 30.4% decline, selling 3,586 ZEVs. A few brands bucked the trend:

• Lexus: Up 192.1% (from 481 to 1,405 units)
• Toyota: Up 37.8% (from 1,886 to 2,599 units)
• Lucid: Up 37.1% (from 960 to 1,315 units)
• Cadillac: Up 17.1% (from 1,512 to 1,771 units)

ZEV Market Share Drops to 13.7%

The decline in ZEV sales has reduced their market share to just 13.7% in Q1 2024, down from 16.6% in Q1 2023. This marks a significant drop from the peak of 22% in Q1 2022 and 21% in Q1 2023.

Top-Selling ZEV Models in California (Q1 2024)

The following models led ZEV sales in California during the first quarter of 2024:

• 1. Tesla Model Y: 22,907 units
• 2. Toyota Camry Hybrid: 14,903 units
• 3. Honda CR-V Hybrid: 8,315 units
• 4. Tesla Model 3: 5,688 units
• 5. Honda Civic Hybrid: 5,507 units
• 6. Toyota RAV4 Hybrid: 4,770 units
• 7. Honda Accord Hybrid: 4,330 units
• 8. Toyota Corolla Hybrid: 3,639 units
• 9. Toyota Sienna Hybrid: 3,252 units
• 10. Toyota Grand Highlander Hybrid: 3,027 units
• 11. Hyundai Ioniq 5: 2,778 units
• 12. Lexus RX Hybrid: 2,714 units
• 13. Ford Maverick Hybrid: 2,631 units
• 14. Kia Sportage Hybrid: 2,588 units
• 15. Toyota bZ4X: 2,527 units

Factors Behind the Decline

Several key factors have contributed to the sharp drop in ZEV sales across California:

• Affordability concerns: Rising vehicle prices and high financing costs have deterred buyers.
• Federal tax credit phase-out: The expiration of the $7,500 federal tax credit has reduced incentives for EV purchases.
• Inflation and tariffs: Increased costs due to inflation and import tariffs have further strained affordability.

The combination of these factors has created a challenging environment for ZEV adoption in California, a state that has long been a leader in electric vehicle adoption.