Tesla shares drop 6% in premarket trading after auto sales plunge again

Core Viewpoint - Tesla reported a decline in automotive sales for the second consecutive quarter, leading to a 6% drop in shares during premarket trading, with automotive revenue falling 16% year-on-year to $16.7 billion [1][2]. Group 1: Financial Performance - Tesla's second-quarter results showed a miss on both top and bottom lines, with automotive revenue decreasing to $16.7 billion [1]. - The company has experienced a nearly 18% decline in stock value year-to-date, excluding the recent premarket drop [3]. Group 2: Market Challenges - Elon Musk indicated that Tesla might face "a few rough quarters" due to the expiration of federal electric vehicle tax credits, although he did not confirm this outcome [2]. - Rising competition in key markets such as China and Europe, particularly from lower-cost Chinese electric vehicle manufacturers, is impacting Tesla's market position [2]. - Data from the European Automobile Manufacturers Association revealed a decline in Tesla's new car registrations in Europe for June [2].