Tesla shares fall 6% after disappointing quarterly results

Shares of American electric car maker Tesla fell 6% in premarket trading on Thursday after the company reported a second consecutive quarter of declining vehicle sales.

Elon Musk’s electric car company reported a decline in revenue and profit for the second quarter, noting that automotive revenue fell 16% year-over-year to $16.7 billion.

In an earnings call, Musk said Tesla “may face some challenging quarters” ahead as a result of the expiration of federal tax credits for electric vehicles.

“I’m not saying we’re going to face it, but we could face it,” Musk said. Tesla faces increasing competition in key markets like China and Europe, particularly from low-cost Chinese electric vehicle manufacturers.

Data from the European Automobile Manufacturers’ Association, or ACEA, released Thursday shows that new Tesla vehicle registrations declined in June in Europe.