Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.

Tesla saw a 17% growth in its services business, but it was not enough to close the gap in falling EV sales, fewer regulatory credits, and a decline in solar and energy storage sales.

Tesla (TSLA) sales are down 21% in California, the largest EV market in the US, and this decline is dragging the entire EV market down. California accounts for roughly a third of EV sales in the US, making it the most significant electric vehicle market in America.