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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.

Need accessories for your Tesla? Check out the Teslarati Marketplace:

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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Musk company boycott proposal at City Council meeting gets weird and ironic

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal to ban Musk-operated companies. It got weird and ironic.

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Credit: Grok

A city council meeting in California that proposed banning the entry of new contracts with companies controlled by Elon Musk got weird and ironic on Tuesday night after councilmembers were forced to admit some of the entities would benefit the community.

The City of Davis in California held a weekly city council meeting on Tuesday, where it voted on a proposal called “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies.”

The proposal claimed that Musk ” has used his influence and corporate platforms to promote political ideologies and activities that threaten democratic norms and institutions, including campaign finance activities that raise ethical and legal concerns.”

We reported on it on Tuesday before the meeting:

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California city weighs banning Elon Musk companies like Tesla and SpaceX

However, the meeting is now published online, and it truly got strange.

While it was supported by various members of the community, you could truly tell who was completely misinformed about the influence of Musk’s companies, their current status from an economic and competitive standpoint, and how much some of Musk’s companies’ projects benefit the community.

City Council Member Admits Starlink is Helpful

One City Council member was forced to admit that Starlink, the satellite internet project established by Musk’s SpaceX, was beneficial to the community because the emergency response system utilized it for EMS, Fire, and Police communications in the event of a power outage.

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After public comments were heard, councilmembers amended some of the language in the proposal to not include Starlink because of its benefits to public safety.

One community member even said, “There should be exceptions to the rule.”

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Community Members Report Out of Touch Mainstream Media Narratives

Many community members very obviously read big bold headlines about how horribly Tesla is performing in terms of electric vehicles. Many pointed to “labor intimidation” tactics being used at the company’s Fremont Factory, racial discrimination lawsuits, and Musk’s political involvement as clear-cut reasons why Davis should not consider his companies for future contracts.

However, it was interesting to hear some of them speak, very obviously out of touch with reality.

Musk has encouraged unions to propose organizing at the Fremont Factory, stating that many employees would not be on board because they are already treated very well. In 2022, he invited Union leaders to come to Fremont “at their convenience.”

The UAW never took the opportunity.

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Some have argued that Tesla prevented pro-union clothing at Fremont, which it did for safety reasons. An appeals court sided with Tesla, stating that the company had a right to enforce work uniforms to ensure employee safety.

Another community member said that Tesla was losing market share in the U.S. due to growing competition from legacy automakers.

“Plus, these existing auto companies have learned a lot from what Tesla has done,” she said. Interestingly, Ford, General Motors, and Stellantis have all pulled back from their EV ambitions significantly. All three took billions in financial hits.

One Resident Crosses a Line

One resident’s time at the podium included this:

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He was admonished by City Council member Bapu Vaitla, who said his actions were offensive. The two sparred verbally for a few seconds before their argument ended.

City Council Vote Result

Ultimately, the City of Davis chose to pass the motion, but they also amended it to exclude Starlink because of its emergency system benefits.

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Elon Musk’s xAI Secures $3B Investment From Saudi AI Firm HUMAIN

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

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Credit: xAI

Saudi artificial intelligence firm HUMAIN has confirmed a $3 billion Series E investment in xAI just weeks before the startup’s merger with SpaceX.

The transaction converts HUMAIN’s xAI stake into SpaceX shares, positioning the Saudi-backed firm as a significant minority shareholder in the newly combined entity.

The investment gives HUMAIN exposure to what has been described as one of the largest technology mergers on record, combining xAI’s artificial intelligence capabilities with SpaceX’s scale, infrastructure, and engineering base, as noted in a press release.

“This investment reflects HUMAIN’s conviction in transformational AI and our ability to deploy meaningful capital behind exceptional opportunities where long-term vision, technical excellence, and execution converge, xAI’s trajectory, further strengthened by its acquisition by SpaceX, one of the largest technology mergers on record, represents the kind of high-impact platform we seek to support with significant capital” HUMAIN CEO Tareq Amin stated.

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The investment also positions HUMAIN for potential long-term equity upside should SpaceX proceed with a public offering.

The investment expands on an existing partnership announced in November 2025 at the U.S.-Saudi Investment Forum. Under that agreement, HUMAIN and xAI committed to jointly develop more than 500 megawatts of next-generation AI data center and compute infrastructure in Saudi Arabia.

The collaboration also includes deployment of xAI’s Grok models within the kingdom, aligning with Saudi Arabia’s broader strategy to build domestic AI capacity and attract global technology players.

HUMAIN, backed by the Public Investment Fund, is positioning itself as a full-stack AI player spanning advanced data centers, cloud infrastructure, AI models, and applied solutions. The Series E investment deepens its role from development partner to major shareholder in the Musk-led AI and space platform.

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Tesla Giga Berlin plant manager faces defamation probe after IG Metall union complaint

Prosecutors in Frankfurt (Oder) confirmed they have opened a defamation probe into Gigafactory Berlin plant manager André Thierig.

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Credit: @Gf4Tesla/X

Tesla’s Giga Berlin plant manager is now under investigation after a complaint from trade union IG Metall, escalating tensions ahead of next month’s works council elections. 

Prosecutors in Frankfurt (Oder) confirmed they have opened a defamation probe into Gigafactory Berlin plant manager André Thierig, as per a report from rbb24.

A spokesperson for the Frankfurt (Oder) public prosecutor’s office confirmed to the German Press Agency that an investigation for defamation has been initiated following a criminal complaint filed by IG Metall against Thierig.

The dispute stems from Tesla’s allegation that an IG Metall representative secretly recorded a works council meeting using a laptop. In a post on X, Thierig described the incident as “truly beyond words,” stating that police were called and a criminal complaint was filed.

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“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons, he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote in a post on X.

Police later confirmed that officers did seize a computer belonging to an IG Metall member at Giga Berlin. Prosecutors are separately investigating the union representative on suspicion of breach of confidentiality and violation of Germany’s Works Constitution Act.

IG Metall has denied Tesla’s allegations. The union claimed that its member offered to unlock the laptop for review in order to accelerate the investigation and counter what it called false accusations. The union has also sought a labor court injunction to “prohibit Thierig from further disseminating false claims.”

The clash comes as Tesla employees prepare to vote in works council elections scheduled for March 2–4, 2026. Approximately 11,000 Giga Berlin workers are eligible to participate in the elections.

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