The Tesla Model Y has once again claimed the title of California's best-selling new car, marking its fourth consecutive year at the top. According to CNCDA data, 110,120 Model Y units were registered in the state in 2025—over 50,000 more than its closest competitor. The Toyota RAV4 took second place with 65,604 registrations, followed by the Toyota Camry in third with 62,324. The Tesla Model 3 also made the top five, securing fourth place with 53,989 registrations.

Despite its dominance in the rankings, Model Y sales in California have declined for the third year in a row, dropping from 132,600 in 2023 to 110,100 in 2025. Tesla as a whole has seen a similar trend in the state, with volumes falling from 238,600 to 179,600 vehicles. One key factor has been the elimination of the federal $7,500 tax credit, which has particularly impacted the brand's mass-market models.

Additional pressure on the company has come from protests against Elon Musk and an increase in vandalism targeting Tesla electric vehicles, as noted by 32CARS. However, the numbers suggest that reputational factors have had limited influence: the Model Y and Model 3 continue to be icons of the state's market.

With the discontinuation of the Model S and Model X, the manufacturer is focusing on mass-market crossovers and sedans. The Model Y remains Tesla's key product in the U.S. and the primary driver of sales in California, where electric vehicles maintain a significant share of new registrations.