Tesla Shares fell more than 8% in premarket trading on Nov. 15 after the electric car maker reported weaker-than-expected second-quarter profit due to continuing pressure in its auto business.
The stock pared losses to be down 7.3% as of 4:37 a.m. ET.
Elon Musk’s electric car company reported that auto industry sales fell 7% year-over-year to $19.9 billion in the fourth quarter, and its adjusted profit margin also fell.
The company has been forced to slash prices globally and offer discounts and incentives amid slowing sales and increased competition, particularly in China, one of its key markets.
Tesla shares have fallen nearly 1% so far this year. S&P 500 It increased by more than 16%.
Tesla remains the overwhelming leader in electric vehicle sales in the U.S., but its aging lineup of sedans and SUVs and Musk’s Incendiary And political commentary.
Bulls and bears are battling over the stock, with some believing the company’s core auto business is under pressure and others betting on Musk’s promise of a future filled with self-driving cars, artificial intelligence and robot taxis.
The market is focused on many other aspects of the Tesla story, including when the company will launch a new mass-market vehicle that will refresh its lineup. Musk said on the company’s earnings call on Tuesday that Tesla plans to launch a new “affordable” car in the first half of next year.
Robotaxis were a big focus on the earnings call, with Musk envisioning a world where Tesla cars would be able to be approved by owners to be used as part of an Uber-like ride-hailing service and the cars would drive themselves.
When asked when the robot taxi might make its first trip, Musk said, “I’d be shocked if it wasn’t next year.”
Musk has a history of promising things on a specific timeline and then not following through. On Tuesday, he pushed back the company’s robot taxi event to October, after previously saying it would take place in August.
“This is because we wanted to make some significant changes that we think will improve the vehicle,” Musk said, adding that Tesla has “some other things we’ll be revealing about soon.”
Musk did not specify what those items were.
– CNBC’s Laura Kolodny contributed to this report.