Tesla shares plunged as much as 10% in early trading Thursday after the company posted its steepest sales drop in more than a decade – and CEO Elon Musk warned the slump may not end anytime soon.
The embattled electric carmaker reported that revenue from car sales fell 16% to $16.7 billion in the second quarter versus a year ago – its second straight quarter of declining sales. Tesla also missed Wall Street’s quarterly estimates for both earnings per share and overall revenue.
“We probably could have a few rough quarters,” Musk admitted during the company’s earnings call on Wednesday. “I’m not saying that we will, but we could.”
Elon Musk admitted a few “rough quarters” could be coming for Tesla. AP
Tesla executives blamed the impact of tariffs as well as the upcoming end of federal electric vehicle tax credits – which reportedly sparked Musk’s public falling-out with President