Tesla shares fall 8% in premarket trading after earnings miss expectations

Tesla The electric car maker’s shares fell more than 8% in U.S. premarket trading on Wednesday after it reported second-quarter earnings that missed expectations as its automotive business continued to come under pressure.

Elon Musk’s electric car company announced Tuesday that it had 2.3 billion euros in vehicle revenue. June quarter sales fell 7% year-on-year to $19.9 billion Although its Adjusted earnings margin also fell.

The company has been forced to slash prices and offer discounts and incentives around the world due to slowing sales and rising competition, especially in China, one of its key markets.

Tesla shares are down nearly 1% so far this year. S&P 500 It has risen by more than 16%.

Tesla remains the largest seller of electric vehicles in the U.S., but it is losing market share to a growing number of rivals, in part because of its aging lineup of sedans and SUVs and Musk’s Seditious and political commentary.

Bulls and bears have been fighting over the stock, with some seeing pressure on its core automotive business and others optimistic about the future. Musk There are promises made about autonomous driving, artificial intelligence and robotaxis.

The market has been focusing on several other aspects of Tesla, including when the company will launch a new mass-market model to reinvigorate its lineup. Musk said on an earnings call on Tuesday that Tesla is on track to launch a new “affordable” car in the first half of next year.

Self-driving taxis were a big focus of the earnings call, as Musk envisions a world in which owners can license their Teslas as part of an Uber-style ride-hailing service, and the cars can drive themselves.

Asked when he expected the first self-driving taxis to be available, Musk said, “I would be shocked if we weren’t next year.”

Musk, who has promised specific time frames but has failed to meet them, on Tuesday pushed back the company’s self-driving taxi event to October after previously saying it would take place in August.

“That’s because I want to make some important changes that I think will improve the vehicle,” Musk said, adding that Tesla “will have some other things to show as well.”

Musk did not specify what those items were.

— CNBC’s Lora Kolodny contributed to this report.