Tesla Inc.’s stock fell more than 11% on Wednesday as investors were disappointed by the company’s declining auto sales. The price of Tesla’s stock was $218.71 at 11:32 a.m. EDT, down $27.67, or 11.23 percent.
Tesla’s stock closed at $246.38 on Tuesday. Tesla released its second quarter earnings on Tuesday, which were below expectations.
Its net income for the June quarter dropped by 45% to $1.48 billion from $2.7 billion a year earlier as sales of electric vehicles plummeted for the second consecutive quarter.
Although the company’s profit declined for a third consecutive quarter, its revenue increased by 2% to $25.5 billion, better than anticipated.
Tesla claimed that despite “a difficult operating environment,” its quarterly revenue was record-breaking.
The manufacturer of electric vehicles saw its gross profit margin, or the portion of revenue left over after costs, decline to 18%. The automaker decided to delay the release of its much-awaited driverless taxis.
Elon Musk, Tesla’s CEO, announced that the company will move its robotaxi prototype showcase event from April to October, a delay of roughly two months. The primary benefit of Tesla is its autonomy. In terms of independence, these other factors are lost in the din, according to Musk.
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