Tesla Model 3 Dominates California Sales Threatening Toyota Camry’s Crown

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Tesla’s Model 3 is outselling the Camry is the Golden State

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by Stephen Rivers

February 15, 2023 at 09:36

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by Stephen Rivers

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No passenger car had more registrations in 2022 in California than the Tesla Model 3. That might help Tesla soon overtake Toyota as the automaker with the biggest market share in California. It also has national ramifications that could foreshadow the future.

In 2022, 78,934 Tesla Model 3 were sold in California. Compare that to the 55,967 Toyota Camrys that were registered during the same year. In fact, the defeat comes at a time when Toyota’s 2022 registrations across all models fell some 14 percent while Tesla saw a 54 percent increase. Despite that, Toyota still has the largest market share, 17 percent, with a total of 289,304 registrations (including all models) in 2022 for now.

Tesla isn’t all that far behind though. It had 186,711 registrations in total in the Golden State during 2022 and recent price cuts will likely see that number climb even higher in 2023, as reported by Automotive News. Combine that with the huge demand for zero-emission vehicles in California and Toyota might lose its crown sooner rather than later.

More: California Bill Could Give Consumers $2,000 To Convert Gas Cars To Electric

The shift also demonstrates an important factor surrounding Californian buyers and the automotive market. The state is a unique market because it’s quick to adopt new technology. In the past, it embraced import brands but that loyalty is now shifting towards EVs. 

“Tesla buyers today are the historical Honda and Toyota buyers of the past,” said Loren McDonald, CEO of the analysis and consulting firm EVAdoption. “They’re switching over to Model 3s and Model Ys.” In fact, the Model Y led the state in light truck registrations (87,257) for 2022. The Toyota RAV4 came in second place with 59,794 registrations while Ford’s F-Series pickups took the third spot with 40,232.

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Toyota is working hard to shift its focus towards a more electrified lineup but it doesn’t seem on track fast enough to keep its lead in California. Last year just 622 registrations came in for Toyota’s only EV, the bZ4X in California. It bet big on hybrid powertrains and we’ll know if that bet pays off in the next few years.