In recent months, the landscape of the electric vehicle (EV) market in California has undergone significant changes, particularly concerning Tesla Inc. $TSLA. According to the California New Car Dealers Association, Tesla's market share of electric vehicles fell to 43.9% in Q1 2025, down from 55.5% a year earlier. This decline raises serious questions about the company's future in a state that accounts for nearly one-third of all zero-emission vehicle sales in the United States.