Securities of Tesla Inc. significantly declined in price during trading on Thursday after the electric vehicle maker’s second-quarter financial results fell short of market participants’ expectations.

The company’s revenue for the reporting period increased by twenty-six percent to twenty-eight billion two hundred million dollars. Meanwhile, automotive sales revenue grew by twenty-three percent to twenty billion five hundred million dollars, and the energy and services segment also showed positive dynamics.

Despite the growth in overall sales, a substantial forty-seven percent surge in operating expenses led to a reduction in operating margin to one and four-tenths percent. Adjusted net income dropped by seventeen percent to one billion two hundred million dollars, coming in at thirty-three cents per share, which fell noticeably below financial analysts’ forecasts.

An additional factor putting pressure on the market valuation was the postponement of timelines for key innovative projects alongside a large-scale increase in capital expenditures. Investors are exercising restraint amid the lack of clear launch dates for the autonomous taxi service and robotic systems.