Charts show Tesla losing market share amid booming electric vehicle sales in California

Electric vehicle sales in California soared to a new high in early 2023, accounting for more than 21% of all new vehicles sold in the Golden State so far this year.

The share of the new vehicle market made up of electric vehicles, which include all-electric, hydrogen fuel cell and plug-in hybrid electric models, has more than doubled in the past two years. Electric models made up less than 8 percent of the state’s new car market in 2020, according to vehicle registration data from the California Energy Commission.

California has long dominated the electric car market in the U.S. due to aggressive tailpipe regulations designed to phase out emissions known to harm human health and cause global climate change by trapping heat in the atmosphere

But the state is only at the beginning of what is likely to be a rapid transition. The number of clean cars is expected to grow exponentially due to a regulation that requires most new cars sold in California to be zero-emissions by 2035.

Tesla is undoubtedly the dominant player in the market. It has been the best-selling electric vehicle brand since 2018. Additionally, the company’s Model 3 and Model Y are now the best-selling new cars in the state, far outpacing the three most popular gas models (RAV4 , Toyota’s Camry and Toyota). Corolla, according to the California New Car Dealers Association).

That said, Tesla has seen its market share slip in recent months, particularly as it faces increasing competition from other manufacturers in the clean car space, including BMW, Chevy and Jeep.

Drivers are more likely to own an electric vehicle in the Bay Area, especially in the affluent enclaves of Silicon Valley, where most people live in single-family homes. San Mateo County had the highest per capita rate of electric sales last year, with 21 electric vehicles sold per 1,000 residents. Meanwhile, Santa Clara County had the highest percentage of new cars sold that were electric vehicles, at 34 percent.

Electric cars made up about 2 percent of the new car market in California a decade ago. Sales grew slowly until 2018, when the mass launch of Tesla’s Model 3 changed the game. Sales have soared in the years since, thanks to a number of factors including high gas prices, a wider variety of electric models, strong government subsidies for buyers and less consumer hesitation. Electric vehicles now represent more than 21% of the market.