Tesla’s (NASDAQ: TSLA) second-quarter earnings report has revealed a broad decline in performance and global market share.
For instance, the company posted $16.7 billion in automotive revenue, down from $19.9 billion during the same period last year.
Regulatory credit sales also saw a significant drop, falling by more than 50% to $439 million.
As a consequence, Tesla stock plunged nearly 8% on Thursday, July 24, trading at $307.41 at press time.
Why is Tesla stock down?
Weakening sales and low automotive revenue for the past quarter underscore the slowdown in demand for Tesla’s electric vehicles (EV).
Moreover, the company delivered 384,000 vehicles in the quarter, reflecting a 14% year-over-year decline. While Tesla doesn’t officially define deliveries as direct sales, they remain the closest publicly reported demand benchmark.
Likewise, according to the European Automobile Manufacturers Association (ACEA), the EV giant’s market share in the EU, UK, and EFTA countries dropped to 2.8% in June, down from 3.4% a year earlier.
In the meantime, Tesla’s new car registrations fell 22.9% year-over-year in June, marking its sixth consecutive monthly market share decline in Europe.
Tesla stock predictions
During the post-earnings conference call, CEO Elon Musk acknowledged that “a few rough quarters” could lie ahead due to the phaseout of U.S. federal EV tax credits.
Musk’s increasing entanglement in political controversies, however, is only raising more concerns among analysts.
The billionaire, who previously held an advisory role in the Department of Government Efficiency (DOGE), recently declared plans to launch his own political party following a public feud with President Trump, putting himself into the spotlight once again.
As a consequence, Wall Street predictions for Tesla now range from as low as $19.05 to as high as $500 for the next 12 months.
Featured image via Shutterstock
