Industry experts raise red flags as Tesla sales hit major roadblock: 'Appears unlucky for Tesla'

Despite outperforming other manufacturers in certain markets, Tesla's overall sales numbers in California have decreased for its seventh straight quarter.

According to an Auto Outlook report released by the California New Car Dealers Association, Tesla saw over an 18% drop in car sales in the state through June compared to the same time frame in 2024.

Altogether, the electric vehicle manufacturer had 83,375 new registrations in the first half of the year. That is 18,616 less than in 2024 at this point. To make matters worse for Tesla, this continues an ominous streak of seven consecutive quarters with diminished car sales in the Golden State.

"Seven appears unlucky for Tesla, as this is the most recent number of quarterly registration declines reported in the state," the CNCDA said in a statement.

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The rough sales numbers for Tesla may have also had a negative effect on the EV market in the state, though Robb Hernandez, chairman of the CNCDA, suggested other factors may also be at play. The CNCDA reported that new zero-emission vehicle sales represented just a 19.5% market share for the year so far. This is compared to a 57.5% market share for gas-powered vehicles (including diesel).

"Dealers are focused on what Californians are buying, not just what policymakers want them to buy," said Hernandez. "It's clear many consumers still face barriers to going fully electric, whether that's due to affordability, lack of infrastructure, or range anxiety."

To that end, increased competition from other automakers has contributed to EVs having a more accessible upfront cost, helping more people benefit from the cost savings associated with driving an EV — especially when paired with solar panels for home charging. EnergySage has helped its customers compare quotes to save up to $10,000 on installation costs.

Nonetheless, the data represents just the latest development in a string of concerning news for Tesla. The company has struggled with declining car sales in several key markets worldwide through the first half of the year. Much of this has been attributed to a decrease in public support for Tesla following CEO Elon Musk's increased involvement in domestic and global politics.

In California, which hasn't seen its electoral votes go to a Republican presidential candidate since 1988, Musk's alignment with President Donald Trump caused many consumers to view Tesla as being "at odds" with their politics, as Reuters noted.

Despite the grim outlook for Tesla, the Model 3 still managed to take the crown as the top-selling passenger car through the second quarter of 2025 in California. With over 31,000 units moved through June, it topped other popular vehicles such as the Toyota Camry and the Honda Civic.