Tesla’s sway in California’s car culture may be plateauing, according to the state’s auto dealer group.

In its first-quarter report, the California New Car Dealers Association said Tesla registrations fell for the second quarter in a row in the state Tesla used to be headquartered in. The latest decline was about 8% after a 10% drop in the fourth quarter.

The association said traditional automakers are filling the gap left by waning Tesla sales, pointing out that franchised dealers represent 66% of alternative powertrain vehicle sales. Tesla’s sales are direct.

Association Chairman David Simpson, who owns three Orange County dealerships, contrasted local auto dealers with Tesla, saying the former have trust bonds with the communities they serve.

"This is why we believe the Tesla sales model is ineffective, layoffs are happening, and people are generally dissatisfied with their level of service. We take pride in our dealerships, and it shows.”

Toyota held onto its sales lead in the state in the first quarter with a 9% registrations bump. By individual model, the Toyota Camry took the top spot among passenger cars from the Tesla Model 3, which fell to third, the association said.

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