Tesla's California sales plunge with competitors moving in

Tesla new-car registrations fell 24% year over year in California in the second quarter, the third time in a row the carmaker's sales have fallen in the Golden State, according to a report released on Thursday (Jul 18) by the California New Car Dealers Association (CNCDA).

Tesla has seen its market share falter throughout the year. Tesla accounted for 53.4% of California's battery-electric car market in the first half, down from 64.6% a year ago, the CNCDA report said. Overall Tesla sales in California are down 17% so far this year.

"Tesla's allure seems to be wearing off, signalling potential trouble for the direct-to-consumer manufacturer," the trade group's analysts said.

New electric vehicle (EV) models have posed a competitive threat to Tesla, which has a relatively older lineup of cars. Ford Motor, Hyundai Motor and Rivian Automotive are all among the companies that have grabbed a bigger slice of California's EV market. Overall, battery-powered cars account for about a fifth of auto sales in the state, while California makes up a third of US EV sales.