Sales of zero-emission vehicles in California slumped 40.2% in the first quarter of this year, compared with the first three months of 2025, according to figures released Tuesday by the California New Car Dealers Association.

Registrations for ZEVs — which include battery-electric vehicles and plug-in hybrids — accounted for 13.7% of the market share of all light-duty cars and trucks sold in the Golden State in the first quarter. That’s the lowest percentage in more than four years.

“The decline in ZEV market share this quarter is significant, and it tracks closely with the phase-out of federal tax credits,” said Brian Maas, president of the California New Car Dealers Association.

Legislation on Capitol Hill, dubbed the “One Big Beautiful Bill” backed by Republicans and signed into law last summer by President Donald Trump, phased out federal tax credits of up to $7,500 on the purchase or lease of a new EV.

The credits expired on Sept. 30, 2025, and consumers interested in EVs and plug-in hybrids rushed out to make purchases before the deadline. So the first-quarter numbers reflect the post-tax credit landscape.

“Despite President Trump’s all-out attacks on electric vehicles, Californians continue to purchase EVs at a brisk pace,” California Energy Commissioner Nancy Skinner said in an email. “With EV sales flourishing in China and Europe, the Trump administration is recklessly rejecting market trends and putting the American auto industry at an incredible global disadvantage. In the face of these anti-innovation and anti-business actions, California continues to build for the future.”

According to the car dealers report, deliveries in California for Tesla dropped 24.3% in the first quarter compared with the year before. Rivian — another all-electric vehicle manufacturer — experienced a drop of 35.9%. The figures were compiled by Experian Automotive.

Registrations in California for all vehicles, regardless whether powered by electricity or internal combustion engines, dropped 8.9% compared with the first quarter of last year.

But Ivan Drury, senior manager of auto insights at Edmunds.com, said electric vehicle sales suffered a bigger hit due to the loss of the tax credit, combined with the fact that EVs typically cost more than gasoline-powered vehicles.

“There is a cost difference,” Drury said, “and as long as that exists, there will be a market share difference that shows you that.”

According to Edmunds data, the average price for an EV in California in the first three months of this year came to $57,139. That’s actually 5.5% lower compared with the same time last year, but it’s still $12,000 higher than the $44,919 average price of an internal combustion engine vehicle.

There was one outlier in the first-quarter numbers: The market share for hybrid vehicles without plug-ins saw a slight increase, going from 20.4% in the fourth quarter of 2025 to 20.9% in the first three months of this year.

Traditional hybrids without a plug-in rely on the car’s electric motor when operating at low speeds and then shift to the internal combustion engine when additional power is needed. Drivers get better gas mileage and don’t have to worry about searching for a charging station.

“It just covers the bases for more consumers,” Drury said. “Range anxiety is just not a thing to consider.”

Registrations for hybrids without plug-ins exceeded 87,000 units in California in the first quarter.

With the war in Iran causing gasoline prices to soar, it will be interesting to see if EV sales get a boost in the second quarter of this year. The average price per gallon in San Diego on Tuesday stood at $5.852, according to AAA — $1.17 higher than the day before the war started.

Analysis from Edmunds showed consideration of EVs from shoppers across the U.S. rose slightly in March to 11.6%, compared with 9.6% in February.

In an odd way, Drury said Californians who are on the fence about buying zero-emission vehicles may have more tolerance for high gas prices than drivers in other parts of the country.

“Yes, possibly seeing $8 or $9 per gallon gas will blow your mind in some way, but I think that in California, it has to get higher for people to react even more so because (high gas prices have) just been a constant problem for years, for decades,” he said.

California has more zero-emission vehicles on the road than any other state. According to the California Energy Commission, registrations topped 2.55 million at the end of 2025. That number included 1.97 million battery-electric vehicles, almost 564,000 plug-in hybrids and 18,444 hydrogen fuel cell vehicles.

Earlier this year, Gov. Gavin Newsom submitted a budget proposal that included setting aside $200 million to revive California’s rebate program for the sale of electric vehicles, to help counteract the removal of the federal EV tax credit.

“Incentives are a critical part” of the Newsom administration’s strategy to keep zero-emission vehicles “affordable and accessible for all,” the proposal said.

The plan calls for the California Air Resources Board to partner with the auto industry. But details — including how much buyers would receive — still need to be worked out, and the rebate package would need to pass through the California Legislature before going into effect.

In 2020, Newsom issued an executive order mandating the elimination of sales of all new gasoline-powered passenger vehicles throughout California by 2035.

But last June, Trump signed three Congressional Review Act resolutions that rescinded California’s electric vehicle rules — as well as mandates related to diesel engines. California and 10 other states have responded by filing a lawsuit, arguing that Trump’s actions are unconstitutional and beyond the authority of Congress.