Tesla new car registrations fell 24% year over year in California in the second quarter, the third consecutive time the automaker’s sales have fallen in the Golden State, according to a report by the California New Car Dealers Association cited by Bloomberg.
While the Model Y remained the state’s top selling car, Tesla had seen its market share falter throughout the year. It accounted for 53.4% of California’s battery electric car market in the first half, down from 64.6% a year ago, the CNCDA report said. Overall Tesla sales in California were down 17% so far this year.
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“Tesla’s allure seems to be wearing off, signaling potential trouble for the direct to consumer manufacturer,” the trade group’s analysts said, according to Bloomberg.
New EV models have posed a competitive threat to Tesla, which has a relatively older lineup of cars. Ford Motor Co., Hyundai Motor Co. and Rivian Automotive Inc. are all among companies that have grabbed a bigger slice of California’s electric-vehicle market. Overall, battery-powered cars account for about a fifth of auto sales in the state, while California makes up a third of US EV sales.
Tesla is the second-bestselling car brand in California, but CNCDA believes it may have peaked. Earlier this month, the company reported global second-quarter sales that were lower than a year ago, but better than analysts expected.
The company registered 52,211 vehicles in California in the second quarter, up 4.4% from the 50,027 registered in the first quarter. Tesla delivered 443,956 cars globally during the latest period, meaning the state accounts for roughly 12% of the EV maker’s sales.
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