Tesla’s market share in Oregon has plummeted from nearly half of all electric vehicles in the state in 2023 to just one in six this year, according to The Oregonian. New Tesla registrations fell 17% through the first five months of 2025 compared to the same period last year, per data from the Oregon Department of Transportation.
What’s happening?
Tesla’s overall market share has dropped significantly in Oregon over the past two years, mirroring broader patterns around the country — the EV maker’s revenue from vehicle sales fell 21% in the first three months of the year.
These sales patterns are also playing out in other states along the West Coast, with The Oregonian reporting that Tesla sales fell 21% in California and 18% in Washington.
Several factors contributed to the decline. Tesla CEO Elon Musk sparked controversy with political activity that included working to slash federal jobs and spending under the Trump administration. These actions likely led to consumers associating the Tesla brand with the Trump brand, which could cut into sales by making a Tesla purchase feel like a political statement — something that could deter what was an important segment of Tesla’s customer base.
Competition in the EV marketplace has also grown more fierce: Many top U.S. and foreign automakers are now offering a variety of electric and hybrid cars, whereas Tesla hasn’t upgraded its core models in years. Sales of its new Cybertruck have so far been underwhelming.
Why are Tesla’s declining sales important?
Tesla’s sales struggles could reduce consumers’ electric vehicle options in the long run if they led to Tesla producing fewer cars or models.
More notably, especially in the short term, Tesla’s declining market share could ultimately slow the adoption of more environmentally friendly vehicles, undermining efforts to reduce our transportation pollution in the air and through gasoline and oil leaks that get into waterways.
What’s being done about Tesla’s struggles?
The electric vehicle market continues to expand despite Tesla’s challenges. Government incentives remain available to help offset purchase costs, while many states maintain their own rebate programs.
Tesla, meanwhile, recently refreshed its Model Y, though results have been mixed regarding efforts to diversify its EV lineup.
Consumers looking to purchase an EV may be able to benefit from the increased competition, with better pricing and more vehicle options that support the transition away from gas-powered transportation.
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
