Last year’s sales and market share declines should worry Tesla, as California is far and away the most important state for EVs in the U.S., but it’s not all bad news. The company’s Model Y SUV was the best-selling EV in the state, racking up nearly 129,000 sales; this vehicle is also the most popular EV in the world.

Tesla’s registrations declined despite the company adding a fifth model — the polarizing Cybertruck — to its lineup last year.

Tesla's electric-vehicle registrations in California fell about 12% last year, according to industry data, indicating mounting challenges for the automaker in the key U.S. market.