Tesla Shares Slide Nearly 6% After Worst Sales Drop In Over A Decade

Tesla shares fell nearly 6% in Europe after the company reported its steepest quarterly sales drop in over ten years.

Tesla shares fell sharply in early European trading on Thursday, sliding by nearly 6% after the electric vehicle maker reported its steepest quarterly sales decline in over ten years.

The stock was down 5.7% in Frankfurt, extending a 5% drop from after-hours trading on Wall Street following the company’s second-quarter earnings report.

Tesla’s quarterly profit missed analysts’ expectations, though its vehicle profit margins were slightly better than feared. Despite this, the disappointing sales figures weighed heavily on investor sentiment.

Speaking during a conference call, CEO Elon Musk warned of turbulent times ahead, attributing part of the company’s current struggles to reduced US government support for electric vehicles. He noted that Tesla may face “a few rough quarters” before it begins to see significant revenue from its long-touted self-driving software and related services, expected to launch late next year.

The company has faced intensifying competition in the EV market and macroeconomic pressures that have cooled consumer demand, casting uncertainty over Tesla’s near-term outlook.