July 22 (Reuters) - 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.

The automaker's plunging vehicle registrations come as CEO

Elon Musk's polarizing political activity puts him at odds with

the liberal values dominant in the state, which has long been

one of Tesla's key markets.

Billionaire Musk announced the formation of the America

Party earlier this month in the wake of his public and

acrimonious fallouts with President Donald Trump.

Musk's political activity has sparked investor concerns that

his latest foray into U.S. politics would distract from Tesla's

operations.

In the April-June period, the Texas-based automaker recorded

41,138 registrations in the state, down from 52,119 units in the

same period of 2024, according to data from the California New

Car Dealers Association.

"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.

Tesla, which will report quarterly results after markets

close on Wednesday, did not immediately respond to a Reuters

request for comment.

Earlier this year, the company shut down production for

several weeks to refresh its best-selling Model Y, and cheaper

variants of the vehicle have been on sale in the second quarter.

Still, the crossover and the Model 3 sedan were the top two

vehicles in the zero-emission and hybrid category sold this year

through June in California.

Globally, Tesla's deliveries fell 13.5% in the second

quarter, setting it up for another year of shrinking sales.

But sales of hybrid vehicles were catching up, the industry

body said, with registrations increasing 54% in the first half

of the year, accounting for 19.2% of the market.

The company recorded registrations of 3,622 units of the

Cybertruck electric pickup in the state during the first half of

the year, the CNCDA said.

Meanwhile, Rivian, which makes the R1T pickup truck

and the R1S SUV, saw a 28.6% second-quarter decline in the

state.