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.

Tesla Inc.'s business in China is sending troubling signals that its "golden" days in the world's largest electric vehicle market may be behind it. Recent data from the China Passenger Car Association indicates a consistent decline in the company's deliveries, raising concerns about its future.