The number of new Tesla Inc. vehicles registered in California fell once again as the company continued to lose ground in the largest US market for electric vehicles.

Tesla's dominance in California is crumbling. The electric carmaker, long the leader in the US's largest electric vehicle market, saw a sharp drop in registrations during the second quarter of 2025, according to the California New Car Dealers Association (CNCDA).

Tesla's electric vehicle registrations in California fell 21.1% in the second quarter, according to industry data, marking the seventh consecutive quarterly drop in the crucial U.S. market.