Tesla has overtaken Toyota as the top-selling automotive brand in California based on second quarter vehicle registration figures for 2023. Tesla registered a total of 68,924 vehicles in California during Q2, surpassing Toyota’s registrations of 67,024 units. This marks the first time Tesla has outsold Toyota on a quarterly basis in California, which is the largest automotive market in the United States.
The newly released data from the California New Car Dealers Association reveals the rising prominence of Tesla and electric vehicles (EVs) in the state. The Tesla Model 3 sedan was the single best-selling model, with 31,940 units registered in Q2. Tesla’s Model Y crossover SUV took second place with 27,169 registrations. By comparison, Toyota’s leading models were the Camry sedan at 27,169 units and the RAV4 SUV at 26,032 units.
California has spearheaded efforts in the US to encourage the adoption of EVs through generous state rebates up to $7,500 for purchasing electric cars and providing access to high-occupancy vehicle lanes. As a California-based company, Tesla has greatly benefited from these supportive policies and built up a loyal customer base. The brand’s flagship vehicles like the Model 3 and Model Y appear well-positioned to maintain dominance in the state.
Meanwhile, Toyota has struggled to keep pace with the rapid EV transformation. Unlike Tesla which exclusively manufactures electric cars, Toyota’s lineup still consists predominantly of gas-powered and hybrid models. The Japanese automaker has been slow to make the pivot to battery-electric vehicles (BEVs), allowing Tesla to capitalize on the growing preference for EVs among California consumers.
Toyota is seeking to catch up by planning to introduce around 30 BEV models globally by 2030. However, the automaker faces stiff competition from newer EV specialists like Tesla that have captured more consumer enthusiasm and brand cachet around electric mobility. Toyota’s reputation relies more on affordability and reliability rather than innovation.
The latest California sales figures underscore how legacy car companies like Toyota with longstanding brand recognition now face disruption from agile digital-native manufacturers like Tesla. With its compelling high-tech image and products like the Model 3 and Model Y tailored for the mainstream market, Tesla appears well on its way to retaining best-seller ranking in California as the auto industry goes electric. Toyota and rivals have their work cut out trying to dethrone Musk’s ascendant company on its home turf.
