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The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits dropped sharply again in the latest quarter.

With federal incentives meant to encourage EV sales set to disappear later this year, things are likely to get even more challenging in the coming months.

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

Americans bought 310,800 EVs in Q2, a 6.3% drop from the year-earlier period. However, the sales dip — 21,000 vehicles — was nearly equal to the slump in transactions for Tesla.

Tesla is facing off with the California DMV over claims that the company has exaggerated the capabilities of its Autopilot and Full Self-Driving technology and misled consumers.

Tesla settled a lawsuit over a driver’s death in 2019 when the Autopilot system in his Model 3 allegedly failed to avoid a collision with a tractor-trailer crossing a Florida highway.

Waymo, through its partnership with Uber, is more than doubling its service territory in Austin as the driverless taxi firm looks to fend off competition from Tesla.

Tesla hasn’t done enough to protect against drivers misusing its Autopilot system, a safety expert testified at a trial over a 2019 fatal collision.

Some 703 high-speed, public charging stations opened in the U.S. in the second quarter, the second-largest such infrastructure boom on record, according to Department of Energy data.

Tesla will stand trial over claims that the company is partly to blame for a fatal 2019 crash in Florida that occurred when the Autopilot system in a Model S allegedly failed to detect a parked SUV.