EV sales still rising at 22.3% in CA, Tesla cedes lead back to Toyota
EV sales continue to rise steadily in California, reaching a record 22.3% market share in Q3. But Tesla has returned to its position as second-best selling brand in the state, behind longtime leader Toyota, after briefly eclipsing the brand last quarter.
The California New Car Dealers’ Association releases its “California Auto Outlook” each quarter, breaking down trends in the auto industry for the previous quarter. It’s out with its new Q3 report today and we’re going to break it down for some insights.
As has been the trend for the last several years, EV sales continued to rise in California. They started the year at 20.5% in Q1, then 21.8% in Q2, and 22.3% in Q3. So this quarter’s rise was a little slower than the last, but still a new record in the state.
It means that California will likely exit the year with a BEV run rate of around 23%, which is slightly down from our expectation of around 25%+. But still significantly up from the 9% of 2021 and 17% of 2022. And pure-ICE market share has dropped in the same timeframe, to 64.6% YTD in 2023 from 71.6% in 2022.
Comparatively, the US had an EV market share of 7.9% in Q3, putting California EV sales about 3x higher than the country’s average (especially if you take California out of the national data, as the state pulls the national average up).
Accounting further for Plug-in Hybrids, more than 1/4 of California’s new car registrations had a plug in Q3. Adding conventional hybrids and fuel cell vehicles to the mix, more than 1/3 – 37.3% – are “alternative fuel vehicles.”
Hybrid and EV sales continued to rise in Q3, but plug-in hybrid sales continued to hover around 3%.
Total new EV registrations actually dropped in California in Q3 as compared to Q2, with 100,597 new EVs registered versus 103,061 in the previous quarter. But overall auto sales dropped by a larger amount, meaning EVs were a higher share of sold vehicles. This is due to the seasonality of car sales – compared to Q3 of last year, overall auto sales are up 21.1%, and BEV sales are up 56.3%.
But one interesting battle being fought in California recently is between Toyota and Tesla for top dog in the leading state for EV adoption and in the state of Tesla’s birth. Toyota has long held the position as #1 brand, and the Toyota Camry had been the best-selling vehicle in California in many years until the Model 3 (and then the Model Y) unseated it. This has earned the Model 3 the nickname “California Camry” based on how common it is on CA roads.
While Tesla had unseated Toyota for the best-selling model, Toyota still maintained position of top-selling brand, as the latter sells a much broader base of models compared to Tesla’s smaller set of model offerings. But in Q2, we noticed that Tesla had narrowly outsold Toyota for the first time, based on the incredible strength of Model 3 and Model Y sales, which were (and remain) the best-selling models in the state by a ridiculous margin.
But in Q3, Toyota came back and earned the top spot again. Toyota sold 70,314 vehicles (compared to 67,482 in Q2) and Tesla sold 60,061 (compared to 69,212 in Q2). This is in keeping with Tesla’s overall down quarter in deliveries, though sales still improved significantly compared to Q3 of last year.
As a result, Toyota is now ahead of Tesla by about 20,000 vehicles year-to-date, meaning that Tesla is unlikely to become the best-selling brand for all of 2023. But the company is still comfortably in second-place, with about a 50,000 vehicle advantage over Honda year-to-date.
And Tesla still dominates the best-selling vehicle list and nobody else even close, at 106,398 and 66,698 units each so far this year. The Toyota RAV4 and Camry are running so far back that they may as well be in a different race, at 40,622 and 39,293 units each.
Other quick insights from the report include: continued strong sales growth for Rivian, which has the largest percent increase year-to-date at 176.8%; a new breakdown of top-selling BEV and PHEV sales which shows the Wrangler 4xe to be the fourth-most-popular vehicle with a plug in the state, behind Model Y/3 and the Chevy Bolt; BEV share of 25.7% YTD in Northern California, as compared to 21.1% in Southern California (pick up the pace IE, OC and LA can’t carry everyone); and a 103% increase in sales of BEVs at franchised dealerships (namely, traditional auto companies) year-to-date, compared to just a 42% increase in BEV sales from direct sellers (namely, the EV startups).
Electrek’s Take
We like looking at this data each quarter because California tends to lead the rest of the nation on trends and adoption of new technologies, and this has always been the case in EV sales.
A couple years ago, California was down at 7% new EV sales, but the rest of the country was selling 2% or so. Now, the country is at 7%, and California is at 22%.
So if you want a sense of where the nation will be in a couple years, this is data worth looking at.
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Uber announced that it will offer self-driving rides powered by May Mobility on its app in Texas later this year.
The ride-hailing platform will have both Waymo and May Mobility on its platform in Texas, while Tesla plans to compete with them all in Austin soon.
Tesla is grabbing a lot of headlines with its plan to offer self-driving ride-hailing rides in Austin starting this June, but Waymo has already been providing the same in Austin on Uber’s platform for months and now a new competitor is coming to Texas.
Michidan’s May Mobility has been somewhat under the radar in the autonomous driving space, but it has been around for almost a decade and has received large funding from Toyota, BMW, and several insurance companies.
Yesterday, they announced a significant step: deploying thousands of vehicles on Uber’s platform within the next few years.
They plan to launch the first vehicles as soon as this year in Arlington, Texas:
Uber Technologies, Inc. (NYSE: UBER) and May Mobility, Inc., a leading autonomous vehicle (AV) technology company, today announced a new multi-year strategic partnership. May Mobility aims to deploy thousands of AVs on the Uber platform over the next few years, with an initial launch planned for Arlington, Texas, by the end of 2025. The partnership highlights both companies’ shared ambition to quickly scale AV use in ride-hail, broadening access to AVs across diverse markets and driving greater consumer choice.
May Mobility uses hybrid Toyota Sienna vans outfitted with its own sensor suite, and it has been launching test programs in Arlington since 2021, so it’s very familiar with the locale.
Dara Khosrowshahi, CEO of Uber, commented on the news:
“We are thrilled to be partnering with May Mobility to continue to scale the availability of autonomous vehicles across the United States. At Uber, we’re building the future of transportation, working with the world’s leading autonomous vehicle developers like May Mobility to help commercialize and deploy this technology quickly at scale around the world.”
Edwin Olson, CEO and co-founder of May Mobility, added:
“Launching on the Uber platform is a big signal to the market that May Mobility is ready to quickly expand to major markets as the pre-eminent autonomy-as-a-service provider. Uber and May Mobility will make it possible for more people across the U.S. to enjoy the transformative benefits of autonomous vehicles.”
If this project goes through, it means Uber is going to be offering driverless rides from both Waymo and May Mobility in Texas by the end of the year.
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Block shares were on track for their second-worst day Friday, plunging more than 20% as investors digested a brutal quarterly report and a wave of analyst downgrades centered on one issue: Cash App.
The first-quarter earnings miss rattled Wall Street, prompting multiple firms — including Wells Fargo, Seaport, BMO, and Benchmark — to downgrade the stock overnight. Many flagged fresh concerns around stagnant Cash App user growth, muted consumer demand, and a soft macro environment that may weigh on monetization.
“Stagnation in the number of active users of the app is even more concerning than users’ reduced spending,” Benchmark wrote in its note, downgrading Block to Hold.
The financial services company missed across the board — on revenue, gross profit, and payment volume — and slashed its full-year guidance, citing macro uncertainty, weaker consumer spending, and lower-than-expected inflows during what’s typically a strong tax refund season.
“I just don’t think we were focused enough and had enough attention on the network and the network density, and that is our foundation,” CEO Jack Dorsey said on the earnings call. “We of course want to deepen engagement with our customers through banking services and Borrow, and I have no doubt we will … but at the same time, we need to make sure that we continuously grow our network, and that starts with peer to peer.”
Cash App generated $1.38 billion in gross profit in the first quarter, up 10% from a year earlier, but shy of the $1.42 billion StreetAccount consensus. Monthly actives remained flat at 57 million — and inflows rose just 8%, despite new features like Afterpay on the Cash Card and broader efforts to position Cash App as a full-fledged banking alternative.
Block 5 day stock chart
Wells Fargo called out “numerous Cash App monetization red flags,” while Seaport pointed to several consecutive quarters of negative GPV growth. Even Morgan Stanley, which reiterated its Overweight rating, called the Cash App miss “surprising” — though it highlighted better-than-expected momentum in the Square seller business, particularly in international markets.
BMO downgraded the stock to Market Perform. Wells Fargo said it’s unwilling to “lay out for the second half Hail Mary,” moving to Equal Weight. Seaport downgraded to Neutral, writing: “Will the real Jack Dorsey please stand up?”
Still, some maintained optimism, with Bank of America reiterating its Buy rating, calling the stock undervalued, and Morgan Stanley saying it was an attractive near-term entry point.
Block’s turnaround plan hinges on lending. The company says Cash App Borrow — now approved by the FDIC to originate loans through its bank subsidiary — will double the number of eligible users and improve margins by bringing servicing in-house.
Marketing spend is also expected to jump 50% in Q2 as Block looks to reaccelerate growth in the back half of the year.
“We are not sufficiently confident in the likelihood of such a rebound to recommend buying the stock on weakness,” Benchmark wrote.
Meanwhile, rival Venmo is showing signs of momentum.
Parent company PayPal reported a 20% revenue jump for the app in Q1, driven by increased adoption of Venmo’s debit card, instant transfers, and growing volume at checkout. While PayPal didn’t disclose an exact revenue figure for Venmo, it said monetization per user is improving — the result of a clear push to embed Venmo deeper into e-commerce flows.
Two very different strategies are now unfolding: Cash App is leaning deeper into lending and banking, while Venmo is chasing spend at checkout. But the goal, however, is the same: Owning the consumer’s wallet.
Right now, Venmo appears to be gaining ground, while Cash App is regrouping.
Environment
Hyundai’s new electric SUV is here: IONIQ 9 prices start at $60,555 with 335 miles range
Hyundai’s first three-row electric SUV will arrive at US dealerships any day now. The 2026 Hyundai IONIQ 9 is an impressive SUV with up to 335 miles of driving range, fast charging capabilities, room for seven, and prices start at just $60,555.
Hyundai reveals 2026 IONIQ 9 prices and specs
After the first IONIQ 9 models rolled off the assembly line at Hyundai’s new manufacturing plant in Georgia in early March, the electric SUV is finally about to reach dealerships.
Hyundai revealed prices and specs for the 2026 IONIQ 9 on Friday as it gears up for deliveries. The three-row electric SUV starts at just $58,955. Including a $1,600 freight charge, the entry-level 2026 IONIQ 9 RWD S model costs $60,555, and that’s with a range of up to 335 miles.
Upgrading to the AWD SE model with 303 horsepower and 320 miles range will cost $64,365, including destination.
The 2026 IONIQ 9 AWD Performance Limited, with 422 horsepower, 21″ wheels, and 311 miles range, starts at $72,850, including the destination charge.
For the range-topping Hyundai IONIQ 9 AWD Performance Calligraphy Design trim, which gets added Matte paint, 21″ wheels, and 311 miles driving range, prices start at $78,090.
Hyundai’s first three-row electric SUV is also one of the first non-Tesla vehicles sold with a native NACS port for charging at Tesla Superchargers. Using a 350 kW DC fast charger, the IONIQ 9 can charge from 10% to 80% in as little as 24 minutes.
The IONIQ 9 is 5,060 mm (199.2″) long, 1,980 mm (78″) wide, and 1,790 mm (70.5″) tall, or slightly bigger than the Kia EV9.
Inside, the “lounge-like” interior provides up to 1,322 liters of cargo space, topping Kia’s three-row EV9, which has up to 1,233 liters.
All IONIQ 9 models sold in the US are built in Georgia, alongside the updated IONIQ 5, and are eligible for the full $7,500 federal tax credit. Hyundai said 2026 IONIQ 9 models will begin arriving at dealerships by early May.
| 2026 Hyundai IONIQ 9 Model | EV Powertrain | Drivetrain | Driving Range (miles) |
Starting Price (including destination fee) |
| IONIQ 9 RWD S | 160-kW (215-HP) Electric Motor |
Rear- Wheel Drive |
335 | $60,555 |
| IONIQ 9 AWD SE | 226.1 kW (303-HP) Dual Electric Motors |
All-Wheel Drive |
320 | $64,365 |
| IONIQ 9 AWD SEL | 226.1-kW (303-HP) Dual Electric Motors |
All-Wheel Drive |
320 | $67,920 |
| IONIQ 9 AWD PERFORMANCE LIMITED |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $72,850 |
| IONIQ 9 AWD PERFORMANCE CALLIGRAPHY |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $76,590 |
| IONIQ 9 AWD PERFORMANCE CALLIGRAPHY DESIGN |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $78,090 |
For those interested, Hyundai is offering a free ChargePoint Home Flex Level 2 charger with the purchase or lease of any new 2026 IONIQ 9. If you already have a home charger, you can opt for a $400 charging credit.
If you’re looking for something a little smaller (and cheaper), the 2025 Hyundai IONIQ 5 is one of the best EV deals right now, with leases starting at just $209 per month. You can use our link to find 2025 Hyundai IONIQ 5 models at a dealer near you.
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