Tesla (NASDAQ:TSLA) stock experienced a sharp decline of more than 11% on Wednesday after the electric vehicle giant released mixed second-quarter results late Tuesday, indicating that growth for the year would be "notably lower" than in 2023.
In its Q2 report, Tesla posted revenue of $25.05 billion, a slight increase from the $24.93 billion in revenue reported in the same quarter last year.
Additionally, adjusted profits missed expectations, coming in at $0.52 per share compared to the anticipated $0.60.
Despite these setbacks, Tesla assured investors that it remains on track for the production of new vehicles, potentially including a more affordable electric vehicle (EV), set for the first half of next year.
Prior to Tuesday's report, Tesla stock had rebounded from a significant slump earlier in the year, having erased losses that had peaked at over 40% in April.
However, the latest drop means the stock is now down more than 12% for the year.
"Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up," Tesla stated in its Q2 earnings report.
Analysts and industry experts believe the introduction of a cheaper EV could drive the next wave of EV sales growth, a sentiment echoed by Tesla CEO Elon Musk.
During the earnings call, Musk announced that the company would unveil its robotaxi on October 10, a delay from the originally scheduled August 8.
Musk explained that the additional time would allow Tesla to incorporate "a couple other things" into the robotaxi before its debut.