<p><strong>Tesla Inc.</strong> (NASDAQ:TSLA) sales fell by 24.3% in the first quarter of 2026 in California, illustrating a wider pullback in EV demand in the state.</p>



<h2>EV Market Share Crashes In California</h2>



<p>On Tuesday, the California New Car Dealers Association (CNCDA) released its outlook for the state’s auto sector during the first quarter of 2026, where electric vehicles’ market share declined to 13.7% in the quarter, its lowest since 2021. For context, the market share for EVs during the same period last year was 20.9%.</p>



<h2>Tesla Sales Fall</h2>



<p>The data also showed Tesla sales falling considerably in the state as the EV maker reported 31,958 units sold, representing a sales deficit of more than 10,000 units from last year’s 42,211 units it sold during the same period. However, Tesla’s Model Y SUV continued to be the best-selling EV in the state at 22,907 units.</p>



<p>Tesla’s market share in California, however, grew to 56% from last year’s 44.2%, which could demonstrate a wider pullback in EV development from other manufacturers. Tesla’s Model 3 sold over 5,688 units, completing the bulk of the EV maker’s sales. The Cybertruck failed to make it in the top 25 best-selling cars in the state, according to the data.</p>



<h2>Elon Musk Hits Back At Critics</h2>



<p>Tesla CEO <strong>Elon Musk</strong> recently hit back at its critics as the EV maker’s Model Y and Model 3 remained at the top of the sales charts with over 101,000 sales combined in the first quarter in the U.S. However, this was also coincided by a decline in Chinese retail sales, which fell over 16% year-over-year despite an increase in Tesla’s Wholsale figures in the market.</p>



<p>The EV giant also reported disappointing first-quarter deliveries, with 358,000 units delivered out of the over 408,000 units Tesla manufactured, which illustrates that over 50,000 units are sitting unsold in the company’s lots at the moment.</p>



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<p>According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It provides a favorable price trend in the Long term.</p>



<p><strong>Price Action</strong>: TSLA declined 1.55% to $386.15 at market close on Tuesday.</p>



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<p><em>Photo courtesy: Tada Images / Shutterstock</em></p>

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<p>Tesla's sales in California fell by 24.3% in Q1 2026, with EV market share dropping to 13.7%, the lowest since 2021. Tesla sold 31,958 units, down from 42,211 units last year, despite the Model Y being the best-selling EV at 22,907 units. Tesla's market share increased to 56%, indicating a decline in competition. CEO Elon Musk defended the company amid a broader drop in EV demand and reported 358,000 deliveries against 408,000 manufactured units, leaving over 50,000 unsold. TSLA shares fell 1.55% to $386.15 at market close.</p>

- Tesla Inc. reported a 24.3% drop in sales in California during Q1 2026, signaling a decline in overall electric vehicle (EV) demand in the state.  
- EV market share in California fell to 13.7%, down from 20.9% the previous year, despite Tesla's market share increasing to 56%.  
- The decline in sales coincides with disappointing first-quarter deliveries, where over 50,000 units remain unsold, contributing to a challenging landscape for the EV market.

Tesla California Sales Fall 24% In Q1 Despite Model Y Leading EV Sales