Tesla's California market share soars to 56% in Q1 2026

Tesla’s share of California’s ‘zero emissions’ vehicle market rose to 56% in Q1 2026 (an 11.8% YoY increase), but the gain masks weakening demand: statewide zero-emissions registrations fell 40% YoY to 57,111 and Tesla’s California shipments dropped 24.3% to 31,958. Globally, Tesla produced 408,386 and delivered 358,023 cars in Q1 2026, below Q4 2025 deliveries, even as the company beat revenue and EPS forecasts. Investors reacted negatively to the mixed signals—initially lifting the stock before pushing it lower—leaving TSLA shares down weekly and significantly below their late-2025 ATH. The combination of a dominant regional market share and declining volumes creates a mixed market outlook for Tesla.