Tesla’s stock plunged more than 5% in after-hours trading after the company released disappointing earnings that fell short of Wall Street’s expectations.
On Wednesday, Tesla shares fell 5.04% in after-hours trading immediately after the earnings report was released. Earlier in the day, the stock had closed down 2.26% at $389.10 during regular trading.
Market analysts blame a combination of factors for the decline, including the fading effects of the Trump-era economic boost and weaker-than-expected sales.
In its post-market earnings release, Tesla reported quarterly revenue of $25.7 billion, significantly below the $27.2 billion projected by analysts.
The company also reported earnings per share (EPS) of 73 cents, below the consensus estimate of 76 cents.
Tesla’s underperformance is primarily attributed to a slowdown in global sales, except in China, where the company benefits from government-backed electric vehicle incentives.
With sales growth slowing and the absence of new momentum since the Trump administration, Tesla may continue to face challenges in the short term. Potential headwinds in the market are ahead.