Tesla shares fell greater than 8% in premarket buying and selling within the U.S. after the electrical carmaker reported second-quarter earnings that missed expectations amid ongoing stress in its auto enterprise.

The inventory pared losses to commerce down 7.3% at 04:37 ET.

Elon Musk’s electrical car agency reported that automotive income dropped 7% year-on-year within the June quarter to $19.9 billion whereas its adjusted earnings margin additionally declined.

The corporate has been compelled to slash costs globally and supply reductions and incentives amid slowing gross sales and rising competitors, particularly in China — certainly one of its key markets.

Tesla shares are practically 1% decrease this yr so far, whereas the S&P 500 has risen greater than 16%.

Tesla stays the highest vendor of electrical automobiles within the U.S. by far, however is dropping market share to a rising variety of rivals due partly to its getting old line-up of sedans and SUVs and the affect of Musk’s incendiary and political commentary.

Bulls and bears have been in a grapple over the inventory, with some believing its core automobile enterprise is beneath stress, whereas others stay hopeful a few future Musk has promised round autonomous driving, AI and robotaxis.

The market has been targeted on numerous different areas across the Tesla story, together with when the corporate will introduce a brand new mass-market automobile to reinvigorate its line-up of automobiles. Musk mentioned on the earnings name on Tuesday that Tesla is on monitor to ship a brand new “inexpensive” automobile within the first half of subsequent yr.

Robotaxis have been an enormous deal with the earnings name. Musk envisions a world through which homeowners can authorize their Tesla car for use as a part of an Uber-style ride-hailing service — and the place the vehicles would drive autonomously.

When requested when he expects the primary robotaxi experience, Musk mentioned: “I’d be shocked if we can’t do it subsequent yr.”

Musk has a historical past of promising issues on a specific timeline and never delivering. On Tuesday, Musk pushed again the date of the corporate’s robotaxi occasion to October, after beforehand saying it might happen in August.

“It is because I wished to make some vital modifications that I feel would enhance the car,” Musk mentioned, including that Tesla is “going to indicate up a few different issues.”

Musk didn’t specify what this stuff could be.

– CNBC’s Lora Kolodny contributed to this report.