Tesla's sales in California have been falling for the third straight quarter, signaling challenges for the company as the EV market matures and competition increases.
Tesla's market dominance in California remains strong, accounting for over half of all EV sales, despite a decline in market share year-over-year.
The economic challenges are compounded by CEO Elon Musk's right-leaning political views, which have turned off some customers in the politically progressive state.
As the EV market matures and new competition emerges, Tesla's aging lineup and previous tactics of price cuts and incentives are less effective in attracting buyers.