Tesla disappoints with second-quarter results, shares down more than 10%

Tesla shares fell more than 8% in US premarket trading after the electric carmaker reported second-quarter results that fell short of investor expectations.

Tesla's automotive revenue fell 13% year-on-year to $17.4 billion in the first quarter of 2024 after a 9% drop in shipments and a reduction in average selling prices. The automaker said it earned $1.5 billion on revenue of $25.5 billion in the second quarter of the year. In the second quarter of 2023, Tesla earned $2.7 billion and had sales of $24.9 billion.

The company has been forced to cut prices and offer discounts globally due to slowing sales and increasing competition, especially in China - one of its key markets.

Stock performance and market position

Tesla shares are down nearly 11% this year (to date), while the S&P 500 index is up more than 16%. Tesla remains by far the largest seller of electric cars in the US, but is losing market share to a growing number of competitors. Contributing factors include an aging lineup of…