--- description: Tesla stock fell 9% Thursday morning before partially recovering, a day after the company announced a big drop in profit. title: Tesla Stock Takes a Tumble After Lower Profits image: https://static.time.com/v3/assets/bltea6093859af6183b/bltde093bcdab65f2d0/6988d9b9bc6cfc69913e2a3c/time-logo.jpg?branch=production --- * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close * [Companies](/tag/companies/) ## Companies Update your preferences in [Account Settings](/account/preferences/) Close # Tesla Stock Takes a Tumble After Lower Profits  by [Noah Rayman](/author/noah-rayman/)  ## Noah Rayman Update your preferences in [Account Settings](/account/preferences/) Close May 8, 2014 2:44 PM CUT  by [Noah Rayman](/author/noah-rayman/)  ## Noah Rayman Update your preferences in [Account Settings](/account/preferences/) Close May 8, 2014 2:44 PM CUT Tesla stock fell approximately 9% Thursday morning before partially recovering a day after the company [announced a big drop in profits.](http://ir.teslamotors.com/releasedetail.cfm?ReleaseID=846260 "undefined") 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](http://money.cnn.com/2014/05/07/autos/tesla-earnings/ "undefined"), 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](http://www.teslamotors.com/modelx "undefined"), 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](http://time.com/18114/heres-why-teslas-massive-new-factory-will-change-everything/ "undefined") 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. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/92357/tesla-profits/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/92357/tesla-profits/"},"headline":"Tesla Stock Takes a Tumble After Lower Profits","datePublished":"2014-05-08T14:44:02.000Z","dateModified":"2026-02-21T07:43:43.563Z","description":"The company expects to deliver more than 10,000 more vehicles this year, but high costs rattled investors.","url":"https://time.com/92357/tesla-profits/","keywords":["Companies","stocks","Elon Musk","Tesla","Markets","Electric Cars"],"thumbnailUrl":"","author":[{"@type":"Person","name":"Noah Rayman","jobTitle":null,"url":"https://time.com/author/noah-rayman/"}],"articleSection":"World","image":[],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/companies/","name":"Companies"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/92357/tesla-profits/","name":"Tesla Stock Takes a Tumble After Lower Profits"}}]}] ```