Elon Musk, CEO of Tesla.
Antonio Masillo | Getty Images
Tesla The electric car maker reported second-quarter profit that missed expectations as its auto business continues to face pressure, sending its shares down more than 8% in U.S. premarket trading.
The stock pared losses and fell 7.3% as of 04:37 EST.
Elon Musk's electric car company reported a 7% annual decline in second-quarter auto revenue to $19.9 billion, with adjusted profit margins also declining.
The company has been forced to slash prices globally and offer discounts and incentives as sales slow and competition intensifies, especially in China, one of its key markets.
Tesla shares have fallen nearly 1% so far this year, while S&P 500 Index The increase has exceeded 16%.
Tesla remains by far the largest seller of electric vehicles in the United States, but it is losing market share to a growing number of rivals, in part because of its aging lineup of sedans and SUVs and the influence of Musk. burning and political commentary.
Bulls and bears have been battling over the stock, with some seeing pressure on its core automotive business while others remain hopeful about the future Musk has promised in autonomous driving, artificial intelligence and robotaxis.
The market has been focused on many other areas of the Tesla story, including when the company will launch new mass-market vehicles to reinvigorate its lineup. Musk said during an earnings call on Tuesday that Tesla expects to launch an “affordable” new car in the first half of next year.
Robotaxis was a big focus of the earnings call. Musk envisions a world where owners can authorize their Tesla vehicles to serve as part of an Uber-style ride-hailing service and the cars will drive themselves.
Asked when he expected the first robotaxi rides to take place, Musk said: “I'd be shocked if we couldn't do it next year.”
Musk has a history of making promises within specific timelines but not delivering on them. On Tuesday, Musk pushed back the date for the company's robotaxi event to October, after previously saying he would hold the event in August.
“It's because I want to make some important changes that I think will improve the vehicle,” Musk said, adding that Tesla “will show off some other things.”
Musk did not specify what those items were.
– CNBC's Lora Kolodny contributed to this report.