California EV sales climb after months of market decline

By Alex Nieves | 07/22/2026 06:35 AM EDT

The spike in EV purchases comes amid sustained high gas prices linked to the Iran war.

A Tesla electric vehicle is seen at a Tesla electric vehicle charging station in Northbrook, Illinois.

Tesla is still the dominant EV brand in California. Nam Y. Huh/AP

California’s electric vehicle market saw an uptick in sales between April and June after dropping to historic lows during the first quarter of the year, according to new state data.

What happened: EVs accounted for roughly 19 percent of all new vehicles sold in the second quarter, a 3.3 percent bump compared to the first three months of the year, the California Energy Commission said Monday.

Meanwhile, the California New Car Dealers Association released data Monday that showed EVs representing 17.8 percent of new car registrations, or roughly 23,000 more electric models than sold in the first quarter. Unlike the state’s figures, the car dealers do not include plug-in hybrids in EV sales data.

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Why it matters: The sales spike comes after six months of decline following the Trump administration’s decision to end a $7,500 federal tax credit for EV buyers in September. EV sales peaked at nearly 25 percent during the third quarter of last year, ahead of the Biden-era incentive being rolled back.

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