Tesla Inc. shares fell nearly 7% in Tuesday trading, erasing earlier gains despite the electric vehicle maker reporting a robust rebound in global deliveries for the second quarter.
The company delivered 480,126 vehicles in the three months ended June 30, a figure that exceeded Wall Street expectations by a wide margin and represented a 25% increase from the previous quarter.
Multiple wire services, including MarketWatch and Di, reported that the market reaction highlighted a shift in sentiment.
The sharp sell-off marks a reversal from earlier in the session, when the stock had led broader gains in US equities on the back of the delivery data.
The subsequent decline suggests that investors are increasingly focused on the sustainability of Tesla's growth rather than a single quarter of recovery.
After a prolonged period of weak sales, the jump in volume was viewed as a necessary correction, but not enough to justify the stock's premium valuation in the eyes of many traders.
Multiple wire services, including MarketWatch and Di, reported that the market reaction highlighted a shift in sentiment.