Tesla's California sales down for seven straight quarters
CALIFORNIA, UNITED STATES, JUL 22 – Tesla’s revenue from regulatory credits is projected to fall nearly 40% in 2025 due to new US policies while sales declined 21% in California and 18% in Europe, analysts say.
- US government changes are undercutting Tesla’s credit revenue, a major profit source for the automaker, as analysts expect it to fall 21% this year to $2.17bn.
- Recent legislation under President Donald Trump eliminates fines for automakers that fail to meet CAFE standards, reducing demand for regulatory credits.
- A total of 41,138 Teslas were registered in California last quarter, marking a 21% year-over-year drop, according to the California New Car Dealers Association.
- Market dynamics shift as Tesla’s credit shortfall boosts traditional automakers’ competitiveness.
- In coming years, Tesla’s credit sales are expected to vanish entirely by 2027, as analysts say credit revenue will fall to $595 million next year before disappearing.
31 Articles
31 Articles

The announcement of a decline in Tesla's sales in the second quarter of 2025 led to a fall in the action of the American automaker.
Not only does the sale of electric cars decline. Tesla also earns less and less with the lucrative sale of pollution rights to the competition.
By Chris Isidore, CNN The decline in Tesla's sales over the past 18 months has been a surprising turnaround for a company that had only recorded a quarterly year-on-year decline in sales before 2024. And the company faces significant problems ahead. Investors already know that second-quarter sales dropped a record 13.5 percent compared to the previous year, the second consecutive quarter in which sales decreased by at least 13 percent. But the s…
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