Tesla Gross sales Are Nosediving in California and Dragging EVs Down Statewide

Tesla’s new retro-futuristic diner has Californians queuing across the block — however they’re much less eager on the corporate’s automobiles.

The automaker’s registrations within the West Coast state fell greater than 20% within the second quarter in comparison with the earlier 12 months, in line with knowledge from the California New Automobile Sellers Affiliation launched on Tuesday.

It is Tesla’s seventh consecutive quarterly decline within the US’s largest EV market, and comes regardless of California’s new automobile gross sales rising within the first half of the 12 months.

The California Sellers Affiliation warned that Tesla’s woes had been dragging the remainder of the state’s EV market down. Zero-emission autos accounted for 18.2% of latest automobiles bought in California within the second quarter of 2025, in comparison with 22% in 2024, the affiliation’s knowledge confirmed.

Tesla has been fighting lacklustre gross sales this 12 months. The electrical car large is battling client backlash over CEO Elon Musk’s high-profile interventions into US politics.

The gross sales knowledge counsel that the model injury has been acute in California, which leans liberal and was the birthplace of the Tesla Takedown protest motion.

Tesla is ready to report second-quarter earnings after the market closes on Wednesday. Earlier this month, the carmaker reported that its deliveries for the second quarter had fallen by round 13.5% in comparison with final 12 months, its second consecutive decline in international gross sales.

Along with the model injury brought on by Musk’s work on DOGE and his assist for the Trump administration — which seemingly ended with a high-profile public spat final month — Tesla can also be going through fierce competitors and a dearth of latest merchandise.

A refreshed model of Tesla’s best-selling Mannequin Y, launched earlier this 12 months, has failed to spice up gross sales. The automaker has not rolled out a brand new mannequin because the Cybertruck in 2023. The polarizing pickup has bought solely 11,000 items to date this 12 months, in line with knowledge from Cox Automotive.

Tesla faces extra challenges from just lately handed laws that’s set to finish the $7,500 tax credit score for brand new US-made electrical automobiles in September.

The corporate just lately launched a wave of latest incentives and provides, together with free supercharging for some Mannequin 3 purchases and free Full Self-Driving transfers, because it appears to drive gross sales earlier than the tip of the tax credit score.

Tesla didn’t reply to a request for remark despatched outdoors regular working hours.