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.
“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.
