Tesla’s Model Y secured its place as California’s best-selling new vehicle for a fourth consecutive year in 2025, outperforming all competitors by a significant margin. Electric vehicles have become a common sight on California roads, and shifting consumer attitudes have made EVs a mainstream option for households and commuters alike. While anti-Elon Musk protests and a brief disruption in Model Y production marked the past year, these hurdles did not prevent the Model Y from dominating registration figures. Rising scrutiny of Tesla and its CEO reflects ongoing cultural debates, but car buyers in the state continued to opt for the brand’s popular models. Despite some owners facing pushback from activists opposed to Musk, the appeal of Tesla’s offerings remained strong.
Various past reports highlighted steady growth in Tesla Model Y sales long before the recent production pause and changing political landscape. Earlier, incentives such as federal tax credits significantly boosted demand, and the brand benefited from being perceived as a status symbol. Now that government incentives have ended and public sentiment toward company leadership has grown more polarized, Tesla faces pressure to maintain its lead among buyers. The Model Y’s recent sales figures suggest a solid customer base, though a downward trend is now evident compared to previous years’ growth.
How Did Model Y Perform Against Competitors?
Data from the California New Car Dealers Association revealed the Model Y registered 110,120 units in the state in 2025. This figure placed it well ahead of the Toyota RAV4, which had 65,604 registrations, and the Toyota Camry at 62,324 units. Tesla’s Model 3 also remained popular, ranking fourth with 53,989 sales. The next best-seller, the Honda Civic, trailed slightly with 53,085 units. These numbers show the extent of Model Y’s advantage in California’s competitive auto market.
Did Policy and Market Shifts Affect Tesla Sales?
Tesla’s dominance came under pressure as the federal $7,500 EV tax credit expired, directly impacting overall demand for electric vehicles. Model Y sales fell from 132,636 in 2023 to 110,120 in 2025, with overall Tesla registrations dropping over the same period. Contributing to these declines were not only economic adjustments but also public protests and boycotts linked to Elon Musk’s leadership. Still, the Model Y continued to outsell rivals even as total volumes dipped.
What Is Tesla’s Strategy After Retiring Other Models?
The company has announced it will discontinue the more expensive Model S and Model X. With this move, Tesla is expected to concentrate its efforts on the Model Y and Model 3, which have been the backbone of its California sales. CNCDA President Brian Maas shared his perspective by saying,
“Tesla has a few advantages. Tesla, as a brand, has a status, cache, so I think folks in certain parts of the Bay. Owning a Tesla is a thing. I think that’s breaking down over time, especially given the political controversies surrounding Mr. Musk.”
He also noted,
“Maybe the Model S has outlived its usefulness in terms of attracting customers. It’s no surprise the ones they kept are the Model Y and Model 3.”
The focus on less expensive models may help the company stabilize sales as market conditions become more challenging.
Tesla’s ability to keep the Model Y and Model 3 at the top of California’s sales charts underlines continued consumer interest, but there is no guarantee of similar success in coming years. The removal of the federal incentive, ongoing controversies, and stiffer competition from traditional automakers’ new EV offerings will all affect Tesla’s position. For auto buyers, considering the discontinuation of the Model S and Model X, the Model Y and Model 3 remain the company’s primary options—and prospective owners should closely track market incentives, company announcements, and third-party reliability data before making a choice.
