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.
More Must-Reads from TIME
- How Donald Trump Won
- The Best Inventions of 2024
- Why Sleep Is the Key to Living Longer
- How to Break 8 Toxic Communication Habits
- Nicola Coughlan Bet on Herself—And Won
- What It’s Like to Have Long COVID As a Kid
- 22 Essential Works of Indigenous Cinema
- Meet TIME's Newest Class of Next Generation Leaders
Write to Noah Rayman at noah.rayman@time.com