By Kara Carlson, Bloomberg
The number of new Tesla Inc. vehicles registered in California fell once again as the company continued to lose ground in the largest US market for electric vehicles.
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A total of 41,138 Teslas were registered in the state last quarter, a 21% drop year over year for the company’s seventh straight quarterly decline, the California New Car Dealers Association said Tuesday. Tesla’s tumble exceeded the 13% dip in total zero-emission vehicle registrations in the state during the same period.
The results highlight the magnitude of Tesla’s ongoing sales slump. The carmaker’s global deliveries tumbled 13% in the second quarter, and analysts expect the EV maker to log a second straight annual decline this year, according to the average of estimates compiled by Bloomberg. The company is contending with an aging vehicle lineup, growing competition in the EV market and a consumer backlash to Chief Executive Officer Elon Musk’s work with the Trump administration, even after the billionaire’s public falling out with the president.
California registrations of Tesla’s top-selling Model Y declined 37% in the the first half of the year. That came as it introduced a freshened version of the small SUV. The company had blamed weak first-quarter sales in part on factory shutdowns related to the update of the key model.
The report, which cites data from Experian, comes a day before Tesla is expected to report second-quarter earnings, with investors looking for an update on key plans for Tesla’s automotive business, including progress on more-affordable vehicles that could reignite consumer interest.
Still, Tesla’s top-selling Model Y and Model 3 vehicles continue to be two of the most popular models in the largest auto market in the US. The Model Y SUV was the top-selling vehicle of any kind, with more than 44,000 registered during the first six months, while the Model 3 was the No. 1-selling passenger car.
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