Tesla Inc. shares fell 8.3% to $390 on Thursday, extending a sharp sell-off that began the previous session.

The decline came even after the electric vehicle maker reported record second-quarter deliveries of 480,126 vehicles, a figure that surpassed analyst expectations and marked a 25% increase year-over-year.

The selling pressure, which saw shares drop nearly 7% in Tuesday trading before accelerating further on Thursday, indicates that the market is prioritizing brand risk over near-term volume growth.

The market’s rejection of the operational data highlights a growing disconnect between Tesla’s manufacturing performance and investor sentiment.

While the delivery numbers suggest a robust rebound in global demand, traders appear to be pricing in persistent headwinds related to consumer backlash against CEO Elon Musk.

The selling pressure, which saw shares drop nearly 7% in Tuesday trading before accelerating further on Thursday, indicates that the market is prioritizing brand risk over near-term volume growth.

This repricing reflects a broader shift in how investors are valuing the company.