Tesla Sales Drop 12% In California: Is Elon Musk's Support For Donald Trump Hurting EV Sales?

Electric vehicle company Tesla Inc TSLA saw sales in California drop in 2024, just as they did across the U.S.

The sales drop begs the question: Is Tesla CEO Elon Musk‘s political support for President Donald Trump hurting the brand?

What Happened: The U.S. sold a record 1.3 million electric vehicles in 2024, which is good news for the industry, but comes with market leader Tesla experiencing pressure and its first annual delivery decline.

A new report shows that California, the biggest market for EVs in the U.S., has fewer registrations for Tesla models.

Data from the California New Car Dealers Association, as shared by Bloomberg, shows that Tesla's sales were down 12% in California in 2024 and down 8% in the fourth quarter. Tesla's sales were down in each of the four quarters of 2024, the report said.

Registrations for the Model 3 were down 36% year-over-year in 2024. Tesla's market share of zero-emission vehicles in the state went from 60.1% in 2023 to 52.5% in 2024. All of the company's vehicles, except the newly launched Cybertruck, had year-over-year declines in 2024.

The report said that the sales decline could be unusual given the addition of the Cybertruck to the vehicle lineup. Politics could be a factor.

Musk spent at least $288 million trying to get Trump back to the White House.

Democratic nominee Kamala Harris won California by 20.2 points in the 2024 election. The strong Democratic base in the state may be less likely to support Tesla given Musk’s strong ties to the Trump White House.

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Why It's Important: Musk was once a California resident, and Tesla had its headquarters there. In recent years, he has lashed out at California and moved Tesla to Texas. He also clashed with Governor Gavin Newsom, which may also be putting pressure on Tesla's sales in the state.

Benzinga previously reported that U.S. EV sales hit a record of 1.3 million in 2024. Tesla's market share, however, fell from 55% in 2023 to 48.7% in 2024.

The company's Model Y and Model 3 ranked as the top two bestselling EVs in the U.S. Both had sales drops of 6.6% and 17.4% respectively for the full year. The Cybertruck ranked fifth in the country with 38,965 unit sales.

Overall in 2024, Tesla had 633,762 vehicles sold in the United States, which was down 5.6% year-over-year. Based on the new report, Tesla's sales are declining quicker in California than they are in the rest of the country.

A report from Brand Finance found that Tesla's brand value was down $15 billion in 2024. The company went from 18^th place for brand value in 2024 to 36^th place in 2025.

The survey found that Tesla owners and other EV owners were less likely to recommend or consider buying a Tesla. This could be due to Musk's personal politics and outspoken political beliefs.

The sales reports and brand surveys continue to show a decline in both real sales and consumer ratings. This could suggest that Musk's politics are playing a role in how people see the brand and if they want to be associated with the company.

Price Action: Tesla stock is down 5.5% to $382.27 on Monday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is up 111% over the last year.

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