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
- Meet the 2024 Women of the Year
- Greta Gerwig's Next Big Swing
- East Palestine, One Year After Train Derailment
- The Closers: 18 People Working to End the Racial Wealth Gap
- Long COVID Doesn’t Always Look Like You Think It Does
- Column: The New Antisemitism
- The Best Romantic Comedies to Watch on Netflix
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Write to Noah Rayman at firstname.lastname@example.org