Tesla California EV Registrations Fall 21% Seventh Consecutive Quarter

Tesla's electric vehicle registrations in California have declined for the seventh consecutive quarter, with a 21% drop in the second quarter compared to the previous year, marking a significant loss of market share in the state's zero-emission vehicle segment. The decline to 41,138 registrations contrasts with a 13% overall dip in zero-emission vehicle registrations, highlighting challenges specific to Tesla. CEO Elon Musk's recent political activities, including the formation of the America Party and tensions with President Donald Trump, have raised concerns among investors about potential distractions affecting the company. Despite a production pause to refresh the Model Y and the introduction of cheaper variants, Tesla's sales continue to shrink globally, while hybrid vehicle registrations in California grow rapidly. In contrast, Tesla's sales in China remain relatively resilient, though recent weekly sales dropped nearly 20%, reflecting mixed performance across key markets. Additionally, leadership changes in Tesla's sales team and ongoing efforts to expand offerings in China underscore the company's strategic responses to these challenges.