Tesla\u2019s big fall<\/p>\n
Tesla sales, in particular, took a plunge.<\/p>\n
Musk, Tesla\u2019s CEO, allied with President Donald Trump during the first part of 2025 and worked on a controversial project<\/a> to cut the size of the federal government.\u00a0<\/p>\n His actions angered many would-be Tesla owners. An Abridged review of state data found that counties that supported Kamala Harris during the 2024 presidential election tended to post larger declines in Tesla sales last year.<\/p>\n \t\tSign Up for the Morning Newsletter<\/p>\n The Abridged morning newsletter lands in your inbox every weekday morning with the latest news from the Sacramento region.<\/p>\n The trend played out in the Sacramento region. Tesla sales decreased by more than 30% from 2024 to 2025 in Yolo County, which had the highest proportion of Harris voters among the four counties in the region.\u00a0<\/p>\n By comparison, Tesla sales declined about 16% in El Dorado County and 12% in Placer County, where the highest proportion of Trump voters live. Tesla sales in Sacramento County fell by 23%.<\/p>\n \u201cMore and more people will not buy an EV from Elon,\u201d said Gil Tal<\/a>, director of the EV Research Center at UC Davis. \u201cIf Elon was not what he is, probably Tesla sales would have gone up this year, not down.\u201d<\/p>\n End of tax credit also a factor<\/p>\n The Trump administration in October ended a popular $7,500 tax credit<\/a> for purchasing new electric vehicles. New EV sales rose just before the credit ended, then dropped sharply<\/a>.<\/p>\n Allowing the tax credits to expire is part of a broader push by the Trump administration to stop favoring EVs and instead bolster gas-powered cars<\/a>.<\/p>\n The Environmental Protection Agency last year started to reverse rules<\/a> that would make automakers build more electric cars. The EPA also started the process of easing fuel economy standards<\/a>, paving the way for automakers to continue to produce gas-powered cars.<\/p>\n Those and other changes will reduce the incentive for car companies to produce electric vehicles, Tal said. That could have a profound impact on EV adoption.<\/p>\n EV supply lagging<\/p>\n Tal said that drivers \u2014 particularly drivers in California \u2014 want to buy affordable electric vehicles. But they aren\u2019t getting the chance because of decisions made by automakers looking to maximize profits.<\/p>\n \u201cThe market is supply and demand, and what we see in our studies is that the demand is very strong, and it\u2019s getting stronger in California.\u201d he said. \u201cThe supply is lacking.\u201d<\/p>\n \u201cThe traditional car companies have no interest in making EVs,\u201d he added. Electric vehicle production \u201crequires huge upfront investment, and in the end, even if they will sell EVs and will make a little bit more money, the investment is not worth it compared to\u2026selling gas cars.\u201d<\/p>\n Government support would help sales<\/p>\n Tal said it will be harder to grow EV sales in America with fewer government policies actively supporting a change.\u00a0<\/p>\n \u201cIf we want to move to electric cars, we need the government to push it, what we call supply side regulation, and that\u2019s what happened in Europe, in China, the Global South, everywhere around the world,\u201d he said. \u201cIt\u2019s good for society.\u201d<\/p>\n \u2018Natural ebb and flow of new technology\u2019<\/p>\n Josh D. Boone, executive director of Veloz, is more optimistic. While acknowledging the decline in sales across the state, he said the drop was modest and the 2025 sales numbers indicate \u201crelative stability, coming off the heels of shifting policies.\u201d<\/p>\n \u201cWe kind of expect that shift to be part of the natural ebb and flow of a new technology,\u201d he said.<\/p>\n Boone agreed with Tal that consumers want to buy EVs. He said there are more options for them, including many EVs that can go a long distance before needing a recharge. And while many new EVs are more expensive than budget gas-powered cars, there is a robust used car market that is more accessible, he said.<\/p>\n![\"Tesla](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/DSC05756-1024x577.jpg.webp.webp\")
Tesla showroom on Arden Way in Sacramento. (Denis Akbari)<\/p>\n![\"EV](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/DSC06042-1024x577.jpg.webp.webp\")
An electric car charges at an EV station in Natomas. (Denis Akbari)<\/p>\n![\"Tesla](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/DSC05768-1024x576.jpg.webp.webp\")
Tesla showroom at Arden Way in Sacramento. (Denis Akbari)<\/p>\n