Tesla’s sales woes continue as the electric vehicle giant recorded a 21% year-over-year decline in sales in the state of California. The data, released by the California New Car Dealers Association, showcases that the automaker recorded over 41,138 new registrations in the second quarter, a 21.1% decline from the previous year’s figure of 52,119 registrations.
Sales and Market Share Decline
Tesla’s year-to-date sales through June fell 18.3% compared to the same period in 2024, with registrations dropping to 83,375 from 101,991. The decline also pushed Tesla’s market share down to 45.3% from 53.4% a year earlier — an 8.1% slide. Tesla’s second-quarter market share stands at 8.5%, down 2.9% from last year’s 11.4% in California.
Model Y and Model 3 Remain Top-Selling EVs
However, the Model Y and the Model 3 continued to be top-selling EVs in the state, with 44,112 units and 31,394 units sold in the state, respectively.
Earnings Call and Analyst Expectations
The news comes as Tesla is readying itself for the company’s second-quarter earnings call. Analysts expect the company to report a second-quarter revenue of $22.79 billion. Bank Of America has raised Tesla’s price target to $341 ahead of the earnings call, citing confidence from the Robotaxi launch. Piper Sandler analyst Alex Potter has also reiterated the $500 price target for the company.
Other Tesla Developments
Elsewhere, Tesla has opened the doors to its diner in LA, with the company’s Supercharger cum Drive-In Theater cum Diner best described as a unique fusion of concepts. The company is also exploring new initiatives, including its xAI plans to raise $12 billion in debt to buy Nvidia chips and build one of the world’s largest AI superclusters.
Conclusion
Tesla’s sales decline in California is a significant concern for the company, despite the continued dominance of the Model Y and Model 3. As the company prepares for its earnings call, investors will be watching closely to see how Tesla addresses these challenges and delivers on its promises.