Tesla stock fell approximately 9% Thursday morning before partially recovering a day after the company announced a big drop in profits.
The maker of high-end electric cars said Wednesday that revenue rose in the first quarter but costs tapered profits. Tesla earned $17 million last quarter, down from $45.9 million in the previous quarter.
Billionaire CEO Elon Musk said operating expenses, including research and development and sales and administration costs, will continue to grow in the next quarter. That growth will be partially fueled by development for Tesla’s new crossover-utility vehicle Model X, which is expected to go on sale next year, CNN Money reports. The company’s expansion into China and construction of a new battery factory also weighed down on profits.
The company aims to deliver 35,000 vehicles this year, up 55% from last year.
At 10:35 a.m. ET Thursday, Tesla stock was down $11.60, or 5.8%, to $189.75.