Here are the Top 3 Best Selling Cars in America's Biggest Market

A major automotive company has passed an important milestone.

California is big. Like, really big. It’s often said that if it was an independent country, it would have one of the biggest economies on the planet, and last year it had a $3.63 trillion gross state product.

So the Golden State is naturally one of the biggest markets for cars in America; in 2021 it had total sales of $136.8 billion, accounting for 11.74% of the United States of America's car sales.

So the title of “the most popular car in California” is certainly a coveted one, and it's a title that Tesla  (TSLA) - Get Free Report can officially proclaim as of last year. 

Tesla’s Model Y and Model 3 electric vehicles were the top-sellers in California last year, outpacing the Toyota Motor Corp's (7203.T) RAV4 and Camry models, according to Reuters.

The Elon Musk-owned company sold 87,257 Model Y electric sport utility vehicles and 78,934 Model 3 electric sedans in California last year, while Toyota  (TYIDF)  sold 59,794 units of its RAV4 SUV and 55,967 of its Camry sedans, the California New Car Dealers Association said in its annual report. 

In 2021, the Camry was the top-seller in California, followed by the Model Y, Honda's (7267.T) Civic, the RAV4, and the Model 3. But now Tesla has claimed the top spot. 

Additionally, California alone accounts for 3.5% of Tesla'a national market share.

Part of the reason, no doubt, for Tesla’s victory is that California is famously one of the most ecologically-inclined places in the entire world, as the State accounted for 40% of U.S. zero-emission vehicle sales in 2022 to the tune of 346,000 units. (Living in a state that is constantly on fire tends to make one a firm believer in climate change, apparently.)

Look for California to continue to dominate the EV market. The state government has an ambitious goal to have 100% of new cars and light trucks sold there be zero-emission vehicles, and it is estimated that by 2030, about 1.2 million chargers will be needed for 8 million vehicles.