Elon Musk, during a news conference with President Donald Trump, inside the Oval Office at the White House in Washington on May 30, 2025.
Tesla shares fell 6% in premarket trading on Thursday after the company reported a second straight quarter of declining automotive sales.
Elon Musk's electric carmaker reported a top and bottom line miss on second-quarter results, noting that automotive revenue fell 16% year-on-year to $16.7 billion.
On an earnings call, Musk said Tesla "probably could have a few rough quarters" ahead as a result of the expiration of federal electric vehicle tax credits.
"I am not saying that we will, but we could," Musk said.
Tesla has been facing rising competition in key markets like China and Europe, especially from lower costs Chinese electric vehicle players.
Data from the European Automobile Manufacturers Association, or ACEA, released on Thursday show Tesla's new car registrations, declined in June in Europe.
Tesla shares have been hammered this year with the stock down nearly 18% to date, not including the Thursday premarket move.