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Tesla continues California domination, still holding over 50 percent EV market share

A Tesla Motors Inc Model X is seen at Tesla's introduction of its new battery swapping program in Hawthorne, California June 20, 2013. Tesla Motors Inc on Thursday unveiled a system to swap battery packs in its electric cars in about 90 seconds, a service Chief Executive Elon Musk said will help overcome fears about their driving range. REUTERS/Lucy Nicholson (UNITED STATES - Tags: TRANSPORT BUSINESS LOGO) - RTX10VSH

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Tesla is continuing its long-standing tradition of dominating electric vehicle sales in California. Despite an increased number of competitors and models attempting to take market share from the company, Tesla still holds over fifty percent of the EV segment in the Golden State.

Although Tesla lost 8.5 percent of its market share compared to last year in the same time frame, it still holds 54.5 percent of the EV sales in California in 2024.

Tesla dominates in California but EV growth is the true winner

According to data from the California New Car Dealers Association (CNCDA), Tesla sold 159,619 vehicles through the first three quarters of the year, down from the 182,689 it sold in 2023 through Q3.

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Despite the drop, no single company has truly made a dent in Tesla’s market share domination on an individual level.

Tesla’s 54.5 percent market share is trailed by Hyundai, which holds just 5.6 percent of the market. BMW is third with 5 percent.

Despite the fact that Tesla holds nearly ten times the sales of the nearest competitor, the CNCDA notes this is the first time there has been a full year of declines:

“…the company’s sales continue to slip, losing 8.5 percent market share compared to last year. This marks a full year of registration declines for Tesla in California, leaving the “alternative powertrain door” open for traditional automakers. Manufacturers and dealers have embraced this shift, expanding their share of battery electric vehicle (BEV) sales to 40.2 percent as consumers increasingly turn to exciting, new electric vehicle (EV) options.”

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Kia, BMW, and Hyundai all increased their market share by 1.4, 1.3, and 1.3 percent, respectively, but it is going to take something significant for Tesla to feel the major impact of these brands gaining market share.

For the Model Y, it was just another quarter. It was the top-selling BEV and PHEV with 105,693 registrations, outpacing the Model 3 with 37,219.

The Model Y was also the best-selling vehicle in both the light truck and luxury compact SUV categories. The Model 3 led the near-luxury class, while the Model S was the best-selling luxury and high-end sports car. The Model X was second in luxury mid-size SUVs.

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Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla plans for largest Australian Supercharger yet

The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.

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Credit: Tesla

Tesla is planning to build its largest Supercharger in Australia yet, expanding on the infrastructure the company has built for electric vehicles.

The company has a 20-stall site in the city of Goulburn in New South Wales, which is an ideal location for trips between Sydney and Canberra, two major cities.

However, according to The Driven, a new Australian Supercharger is on the way, and it is going to be the biggest in the country, accounting for more than 25 stalls total. They will likely be V4 Superchargers, Tesla’s fastest piles that enable some serious range for cars that will plug in.

Tesla is operating 148 active Supercharger sites in Australia, with 80 of those being available to non-Tesla EVs as a part of the company’s initiative to make things accessible for all electric vehicle owners.

The expansion of Tesla Superchargers is welcome for all EV owners, especially as there are so many automakers that have access to the network. It is widely reliable and extremely dependable; it is tough to find a Supercharger location that is completely out of service.

The opening of the stalls will be welcome for the Tesla owners of Australia, especially as the Model Y continues to be a major contributor to the company’s prowess in the market.

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Tesla’s sales performance in Australia showed a mixed but challenging picture in 2025, with the company delivering 28,856 new vehicles, marking a significant 24.8% decline from 38,347 units in 2024.

This represented the brand’s largest annual drop on record and the second consecutive year of decline, amid intensifying competition from Chinese EV makers like BYD and shifting buyer preferences toward SUVs. The Tesla Model Y remained a standout performer and Australia’s best-selling electric vehicle, with 22,239 deliveries, up 4.6percent year-over-year, accounting for about 77 percent of Tesla’s total sales.

The mid-year launch of the updated “Juniper” Model Y helped sustain momentum in the popular mid-size SUV segment.

In contrast, the Model 3 sedan struggled sharply, plummeting 61.3 percent to just 6,617 units, as consumers favored SUVs and faced growing options in the sedan category.

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Despite the overall dip, Tesla held onto leadership in the EV segment, capturing roughly 28 percent of the BEV market. Australia’s EV market grew robustly, surpassing 156,000 sales and reaching 13 percent market share, up 38.7 percent from 2024, highlighting strong broader adoption even as Tesla faced headwinds.

Early 2026 data suggests a rebound, with EV sales nearly doubling year-over-year in February and the Model Y showing strong gains, positioning Tesla for potential recovery amid ongoing competition.

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Tesla Model Y L gets new entertainment feature

Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.

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Credit: Tesla China

Tesla is including a new entertainment feature in the Model Y L, improving the vehicle even further and making it what appears to be the best configuration of the all-electric crossover globally.

Unfortunately, we in the U.S. do not yet have access to the vehicle, and the plans for it to enter the market remain up in the air, as CEO Elon Musk has said it could appear late this year. However, there is nothing concrete at this time.

Tesla’s latest enhancement to the Model Y L is a new Immersive Sound X feature, exclusive to the Model Y L.

It aims to transform the in-car listening experience into something truly cinematic. First introduced by Tesla China in October 2025, this advanced audio mode is now rolling out to deliveries in Australia and New Zealand, highlighting Tesla’s approach to region-specific premium upgrades.

At its core, Immersive Sound X leverages real-time sound extraction technology to create a customizable 3D soundstage. Using advanced algorithms, it analyzes audio tracks to separate direct sounds, such as vocals or lead instruments, from ambient elements like echoes and reverb.

The system then positions direct sounds front and center while diffusing ambient sounds to the side and rear speakers, simulating an expansive virtual environment. This results in a heightened sense of depth and spatial awareness, making listeners feel as if they’re in a concert hall or studio.

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What sets Immersive Sound X apart from the standard Immersive Sound found in other Tesla models is its hardware dependency and enhanced processing. The Model Y L boasts an 18-speaker system with a subwoofer, compared to the 15-speaker setup, plus a subwoofer, in the Model Y Long Range’s previous premium audio configuration.

This upgrade provides more “kick” and precision, enabling finer control over the soundstage. Unlike traditional surround sound, which requires multi-channel mixes like Dolby Atmos, Immersive Sound X works with any stereo source from platforms like Spotify or Apple Music, so every owner will be able to use it.

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

You can fine-tune the experience via an adjustable immersion slider, scaling the “size” of the virtual space to personal preferences. This caters to a more custom sound.

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An Auto mode intelligently adapts based on media type, whether it’s music, podcasts, or videos, ensuring optimal immersion without manual tweaks. This feature is unavailable on standard Model Y variants (with 7 or 15 speakers) or Model 3 trims, underscoring Tesla’s strategy to differentiate higher trims through superior hardware and software integration.

Beyond audio quality, Immersive Sound X aligns with Tesla’s ecosystem of over-the-air updates, potentially allowing future refinements.

For audiophiles and casual listeners alike, it elevates mundane commutes into immersive journeys, proving Tesla’s commitment to blending cutting-edge tech with user-centric design.

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Elon Musk

Elon Musk teases crazy outlook for xAI against its competitors

Musk’s response was vintage hyperbole, designed to rally supporters and dismiss doubters, something his responses on social media often do.

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Credit: NVIDIA

Elon Musk has never been one to shy away from crazy timelines, massive expectations, and outrageous outlooks. However, his recent plans for xAI and where he believes it will end up compared to its competitors are sure to stimulate conversation.

In a bold and characteristic response on X, Elon Musk fired back at a recent analysis that positioned his AI venture, xAI, as lagging behind industry frontrunners.

The post, from March 14, came as a direct reply to forecaster Peter Wildeford’s assessment, which drew from benchmarks and reporting to rank AI developers.

Wildeford placed Anthropic, Google, and OpenAI in a virtual tie at the top, with xAI and Meta trailing by about seven months. Chinese players like Moonshot, Deepseek, zAI, and Alibaba were estimated to be nine months behind, while France’s Mistral lagged by about a year and a half.

Musk’s response was vintage hyperbole, designed to rally supporters and dismiss doubters, something his responses on social media often do.

He claimed xAI would “catch up this year,” meaning by the end of 2026, erasing that seven-month deficit against the leaders. But he didn’t stop there.

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Musk escalated his vision to 2029, predicting xAI would “exceed them all by such a long distance” that observers would need the James Webb Space Telescope, NASA’s orbiting observatory stationed about 930,000 miles from Earth, to spot whoever lands in second place. This analogy underscores Musk’s confidence in xAI’s trajectory, implying an astronomical lead that could redefine the AI landscape.

Breaking down these claims reveals Musk’s strategic optimism. First, the short-term catch-up: xAI, launched in 2023, has already released models like Grok, but recent benchmarks, including those for Grok 4.2, have shown it falling short in capabilities compared to rivals.

Anthropic’s Claude series, Google’s Gemini, and OpenAI’s GPT models dominate in areas like reasoning, coding, and multimodal tasks. Musk’s assertion suggests aggressive scaling in compute, talent, or architecture, perhaps leveraging xAI’s ties to Tesla’s Dojo supercomputers or Musk’s vast resources, to close the gap swiftly.

The longer-term dominance by 2029 paints an even more audacious picture. Musk envisions xAI not just parity but supremacy, outpacing competitors in innovation speed and model sophistication.

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This could involve breakthroughs in energy-efficient training, real-world integration, like Tesla’s robotics, or ethical AI alignment, aligning with Musk’s stated goal of “understanding the universe.”

Critics, however, point to parallels with Tesla’s Full Self-Driving delays; one reply highlighted Musk’s 2023 promise of FSD readiness. Musk has made this promise for many years, and although the system has been strong and improving, it is still a ways off from the completely autonomous operation that was expected by now.

Tesla Full Self-Driving v14.2.2.5 might be the most confusing release ever

Musk’s comment highlights the intensifying U.S.-centric AI race, with xAI challenging the “three-way” dominance noted by Wharton professor Ethan Mollick, whom Wildeford quoted. As geopolitical tensions rise—evident in the Chinese firms’ lag—Musk’s tease could spur investment and talent wars.

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Yet, it also invites scrutiny: Will xAI deliver, or is this another telescope-needed mirage? In an industry where timelines slip but stakes soar, Musk’s words keep the spotlight on xAI’s ambitious path forward.

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