Tesla Stock Plunges 6% in Pre-Market Trading After Sales Decline

Tesla's stock fell by 6% in pre-market trading on Thursday after the company reported a second consecutive quarter of declining car sales.

Elon Musk stated that Tesla "could possibly have some difficult quarters" ahead due to the expiration of federal tax credits for electric vehicles.

Tesla faces increasing competition in key markets such as China and Europe, particularly from lower-cost Chinese electric vehicle players. Data from the European Automobile Manufacturers Association (ACEA) showed a decline in new Tesla car registrations in Europe in June.

Tesla's stock has fallen nearly 18% year-to-date. The U.S. company lost market share in Europe for the sixth consecutive month in June, according to ACEA. Tesla's market share in the European Union, Britain, and the European Free Trade Area fell to 2.8% in June, from 3.4% last year. New Tesla car registrations fell to 34,781 units in June, down 22.9% from the same month in 2024.