California has surpassed its long-standing EV adoption goals, with more than 2.55 million electric vehicles sold since 2012 as of 2025, underscoring two decades of leadership in the market.

Q4 2025 saw 79,066 Californians buy new EVs (18.9% of new car sales), down from Q3, as a result of the expiry of federal tax credits.

EVs now account for about 22.9% of all new car sales in 2025, with Santa Clara County posting the highest share of new vehicles sold as electric at 41.1%.

Support for California’s EV growth has come from rebates, tax credits, and incentives aimed at reducing air pollution and greenhouse gases, reinforcing the state’s leadership in clean transportation.

A coalition of California and 10 other states filed a lawsuit against the Trump administration over blocking EV charging funds and California’s vehicle regulations, with the case pending.

The 2024 actions culminated in a June 2024 decision blocking California’s 2035 gasoline-powered vehicle ban, triggering the multi-state lawsuit that remains unresolved.

State regulators, including the California Energy Commission and ARB, continue to emphasize commitment to zero-emission infrastructure and policy goals through updates and quotes.

Nationally, the share of EVs fell from 10.5% in Q3 2025 to 5.8% in Q4 2025, reflecting broader market headwinds.

In response to federal changes, Governor Newsom has proposed a $200 million state incentive program to accelerate EV adoption, while private incentives from retailers are expanding.

At Davos, Governor Newsom framed California’s EV milestone as a driver of American competitiveness, highlighting public investment and a planned $200 million rebate program pending legislative approval.

Newsom also stressed continued investment in charging infrastructure and manufacturing competitiveness to sustain the EV trajectory.

The governor linked the milestone to broader national leadership in clean vehicles and American competitiveness in a global market focused on low-emission mobility.