How distaste for Elon Musk could spoil California’s gas car phase-out

Happy Tuesday — and happy Earth Day! Nicole Nixon here, The Bee’s California Politics Reporter and your A.M. Alert guide for the next week. I cover President Trump’s impact in California, statewide elections (including the lead-up to next year’s governor’s race), and how elected officials handle major issues like homelessness and affordability. Drop me a line or a story tip at nnixon@sacbee.com.

TO EV OR NOT TO EV?

Here’s one way to measure Elon Musk’s plummeting popularity in California: Tesla sales (well, technically new registrations of Tesla vehicles) dropped 15% year-over-year during the first three months of 2025, according to a new report.

Car dealers are seizing on the drop-off — which drove lower sales of electric vehicles across the state — to push for more time to completely phase out sales of new gas-powered passenger cars by 2035.

The first step in the plan, which Gov. Gavin Newsom announced via executive order in 2020, begins next year, when 35% of new car sales should be zero emission vehicles. According to the Experian Automotive report, 24.5% of new vehicle registrations in Q1 were ZEVs, which includes electric, hydrogen and plug-in hybrid models.

“The first sales numbers of 2025 continue to trend in the wrong direction and should be a wake-up call,” said Brian Maas, president of the California New Car Dealers Association. “It’s time to admit that the state has hit a wall amid a lack of confidence in ZEV adoption, as well as a statewide shortage of EV charging stations.”

Tariffs are also expected to raise the price of new vehicles — both domestic and imported — this summer, which could further hamper sales numbers.

Dealers have raised concerns about being able to hit the sales goals and being penalized with hefty fines if they don’t.

The group of auto dealers is pushing to “calibrate the policy to reflect market realities and the needs of everyday Californians,” Maas said.

The state will release its own ZEV sales update at the end of the month, but regulators sought to temper the report’s numbers. A California Air Resources Board spokesperson said while plug-in hybrids are considered ZEVs under the state’s phase-out policy, the car dealers’ report does not count them, which “skews the total lower.”

“California’s vehicle standards remain in effect and include built-in flexibility to adjust to individual manufacturers’ development timelines and market conditions,” CARB chair Liane Randolph said in a statement.

Randolph said the agency would “continue to monitor the federal situation and remain committed to building on our 50-year legacy of cooperation with the industry which has driven global innovation and provided cleaner air in our communities.”

CARB has also released a fact sheet responding to many claims made by auto dealers.

But back to Tesla. Car sales are hardly a test of an automaker CEO’s popularity, but Tesla sales fell around the country. The decline was driven partly by more EV selection on the market, but market analysts say Musk’s embrace of President Trump was also a factor.

The company has long dominated the EV space, and the report showed Tesla’s share of new electric vehicle registrations fell beneath 50% in California for the first time.

ANOTHER ONE

The candidate field to replace Newsom grows ever larger.

Conservative pundit and British expat Steve Hilton announced his candidacy via a video on X on Monday.

The son of Hungarian migrants, Hilton has worked for two former UK prime ministers: he began his career working for Margaret Thatcher and later served as a senior advisor to David Cameron.

Hilton moved to California in 2012 to become a visiting scholar at Stanford University. He has written two books and hosted a Fox News program. He said he fell in love with California and became a U.S. citizen in 2021.

“It was one of the proudest days of my life,” Hilton said in the video, which showed a still photo of him wearing a mask and taking the oath of allegiance. “But also a reminder of the madness: the masks, the lockdowns, the school closures.”

The Republican commentator is a frequent critic of Newsom and other Democrats. His entrance into the 2026 governor’s race gives Riverside County Sheriff Chad Bianco some competition for conservative votes in the jungle primary.

Hilton’s website lists some of his policy priorities: cutting taxes, cutting regulations for businesses, building more housing, and improving math and reading scores in public schools.

“Let’s make California the land of opportunity again: great jobs, great homes, great kids,” he said in his announcement video. “There’s only one way to do that. We’ve got to end the one-party rule that got us into this mess.”

QUOTE OF THE DAY

“I think young people need to drink more. I think this anti-alcohol movement is the worst thing since remote work for young people.”

- Author and speaker Scott Galloway discussing the masculinity crisis on “This is Gavin Newsom”

Have a story idea or tip? Reach the entire SacBee Capitol Bureau team at capbureau@sacbee.com.

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This story was originally published April 22, 2025 at 4:55 AM.