Tesla shares fell 8% after disappointing results

Shares of US electric car maker Tesla fell 8% in extended trading after earnings fell again in a weak electric car market. Tesla reported disappointing earnings for the second quarter, with revenue rising 2%.

The company, led by billionaire Elon Musk, recorded weaker-than-expected profits for the second quarter, with car sales declining for the second period in a row.

The stock fell more than 8% in extended trading. The company revealed earnings per share of about 52 cents, compared to expectations of about 62 cents.

While revenues amounted to $25.50 billion, compared to expectations of $24.77 billion. Revenues rose 2% from $24.93 billion the previous year. But car sales fell by 7% to $19.9 billion from $21.27 billion in the same quarter last year.

The electric car maker said in a meeting with investors yesterday, Tuesday, that revenues rose by 2% from $24.93 billion a year ago. But car sales fell 7% to $19.9 billion from $21.27 billion in the same quarter last year.

Auto sales included regulatory credits worth $890 million, more than triple the number from last year. The company confirmed that it “recognized record regulatory credit revenues in the second quarter,” pointing to the fact that other automakers “are still lagging behind in meeting emissions requirements.” After a difficult first half of the year that saw Tesla cut more than 10% of workers, the company reported better-than-expected second-quarter deliveries earlier this month. However, deliveries remained lower than the previous year for the second time in a row.

Although Tesla announced the delivery of 443,956 vehicles in the second quarter, a 4.8% decline from the same period of the previous year, these numbers were better than analysts expected. The company also said that its energy generation and storage division, which sells and installs battery backup and solar photovoltaics, deployed 9.4 gigawatt hours of energy products in the period ending June 30. This is more than double the record set in the previous quarter.