Tesla's second-quarter sales in California fell sharply.
AInvestFriday, Jul 19, 2024 2:00 am ET
1min read
TSLA --

A report released Thursday by the California New Car Dealers Association showed that Tesla’s new vehicle registrations in California fell 24% in the second quarter, marking the third consecutive quarter of declines in the state.

Although Model Y remains the most popular car in California, Tesla’s market share has been falling. The California New Car Dealers Association said Tesla’s share of the state’s electric vehicle market was 53.4% in the first half of this year, down from 64.6% a year earlier. Tesla’s sales in California fell 17% in the first half.

The industry group’s analysts said: “Tesla’s allure seems to be waning, suggesting that the direct-to-consumer manufacturer may be in trouble.”

In after-hours trading on Thursday, Tesla’s stock price changed little. The stock had fallen sharply earlier this year but has been largely flat since Elon Musk promised a new fully autonomous robotaxi in 2024.

More new electric vehicle models have been introduced to the market, posing a competitive threat to Tesla, whose car lineup is relatively old. Ford, Hyundai and Rivian have taken a larger share of the electric vehicle market in California. Overall, electric vehicles account for about one-fifth of the state’s car sales, and California accounts for one-third of the US electric vehicle market.

Tesla was the second most popular car brand in California in the second quarter, but the California New Car Dealers Association said it may have peaked. The company earlier this month reported global deliveries of 443,956 vehicles in the second quarter, below expectations but better than analysts’ forecasts.

The company registered 52,211 new vehicles in California in the second quarter, up 4.4% from 50,027 in the first quarter. The company delivered 443,956 vehicles globally in the second quarter, meaning California accounted for about 12% of its total deliveries.

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