Tesla's earnings came in one and a half times lower than expected. Its stock price fell

Tesla's adjusted earnings for the second quarter fell significantly short of Wall Street estimates: they came in at 33 cents per share, compared with a consensus forecast of 51 cents, according to Bloomberg. However, revenue exceeded analysts’ estimates, coming in at $28.24 billion compared to the expected $25.71 billion, according to CNBC.

The company explained that its current core business—the automotive sector—has come under pressure due to a decline in average selling prices and a reduction in revenue from the sale of regulatory credits. Profitability was also negatively impacted by increased spending on AI, research and development, stock-based compensation, and sales expenses. These factors were partially offset by record vehicle deliveries, increased revenue from FSD driver-assistance system subscriptions, and lower vehicle manufacturing costs.

Tesla shares fell 2.9% in after-hours trading following the release of the report.

This news story is being updated.

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