(KRON) -- Tesla registration in California dropped by nearly 25% in the first quarter of 2026, according to a new industry report. The report, published by the California New Car Dealers Association on Tuesday, indicates that Tesla registrations plunged 24.3% compared to the first quarter of 2025. The drop in registrations was accompanied by a market share drop that saw Tesla fall from 9.2% to 7.7%. Fiery Tesla crash on NB I-280 in Daly City blocks lanes Despite the drop, Tesla actually saw its share of the zero-emission vehicle (ZEV) market rise from 44.2% to 56% as competing EV models posted steeper declines, the report said. But even as Tesla rose in the segment, ZEV market share in California overall dropped to 13.7% in the first quarter, down from 21% in 2025. This marks the lowest market share for ZEVs since the fourth quarter of 2021. The pullback in the market for the ZEV segment, the report said, reflects a combination of factors, including the phase-out of federal battery electric vehicle (BEV) tax credits, affordability pressures and a broader softening of the market. ...read more read less