EV Sales in Sacramento Fall in 2025 as Credit Ends and Political Weight on Tesla Grows

In 2025, electric vehicle sales in the Sacramento region totaled about 19,900 units, an 8% drop compared to 2024, according to state data covering the four counties: Sacramento, Yolo, El Dorado, and Placer.

Similar to the rest of California, EVs represented 23% of auto sales in 2025, down from 25% in 2024, according to Veloz, the association promoting the adoption of electric vehicles.

Tesla's Drop Amidst Political Shifts

Tesla's sales suffered a sharp decline. CEO Elon Musk adopted controversial political positions in early 2025, and the end of a federal tax credit for EVs were factors that contributed to the drop. Analyzed data indicates that counties with a higher proportion of voters who supported Harris in 2024 saw larger declines in Tesla sales last year.

In the Sacramento region, Tesla sales fell 23% in Sacramento County, over 30% in Yolo County, ≈16% in El Dorado, and ≈12% in Placer County, with Yolo showing the highest proportion of Harris voters and Placer the highest concentration of Trump voters.

Gil Tal, director of the EV Research Center at UC Davis, points out that part of the consumer shift towards other options may reflect the perception that buying an EV from Elon is no longer as attractive as it once was. If Elon's public profile were different, Tesla's dynamics might have been different.

End of Tax Credit and Regulatory Changes

In October, the federal credit of US$ 7,500 for new EV purchases ended. Sales rose slightly before the deadline but dropped sharply afterward. The administration has sought to reduce EV incentives, while the EPA begins to relax fuel efficiency rules, which may influence automakers' decisions.

According to Tal, such changes reduce the public impetus for EV production, which could have profound impacts on adoption by automakers and, consequently, on future launches of electric models.

Supply Lag Versus Demand

Tal states that demand for affordable EVs remains high in California, but supply is not keeping up. Automakers face high upfront investments and often weigh the financial return against gasoline-powered vehicles.

Josh D. Boone, executive director of Veloz, maintains a more optimistic view, highlighting that despite the drop in 2025, the numbers indicate relative stability amidst policy changes. He points to a market with increasingly diverse options and greater reach, in addition to a robust used vehicle market that facilitates the entry of new buyers.

Boone also affirms that there will continue to be an EV supply, predicting more affordable models as the technological curve advances. Veloz gathers major automakers among its members, which supports the expectation of increased availability of affordable EVs in the future.

Phillip Reese is a regular contributor and writes the Numbers Matter column for Abridged.

Now it's up to you: in your view, what public policy would be most effective in accelerating EV adoption in your region — supporting supply, supporting consumers, or letting the market adjust naturally? Leave your comment below and share your opinion.