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Tesla’s stock rose 0.5% in premarket trading on Tuesday after falling on Monday.
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Tesla’s share of the US EV market has fallen to 38%, its lowest level in eight years, per a Cox Automotive report.
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On Friday, Tesla proposed a pay package worth up to $1 trillion for CEO Elon Musk.
Tesla‘s stock is up slightly in premarket trading, following a report that its EV market share has fallen to its lowest level in eight years.
According to data the research firm Cox Automotive shared with Business Insider, Tesla’s share of the American EV market has fallen from a peak of 80% to just 38%, the lowest it has been since 2017. Reuters first reported the data.
Reuters published the story before the opening bell on Monday. Tesla’s stock fell 1.3% that day. It was up 0.5% at 8:15 a.m ET on Tuesday.
The news comes after the company unveiled on Friday its proposed pay package for CEO Elon Musk, in which he would receive stock worth $1 trillion if he reaches a series of targets, including bringing Tesla’s market cap to $8.5 trillion by 2035.
In a note from Monday, Danni Hewson, AJ Bell’s head of financial analysis, called the firm’s slumping market share and the proposed compensation deal “a rather toxic mix of ingredients.”
“Competition in the EV space has negated that first on the field advantage that was hugely instrumental in the company’s early success and Tesla’s roster of tiered models, still absent of an ‘affordable’ option, has further dampened demand,” Hewson wrote.
In its second-quarter earnings, Tesla reported revenue of $22.5 billion — the steepest decrease in at least a decade. Adjusted earnings per share were $0.40, below analysts’ estimates of $0.42.
In its earnings release, Tesla cited a “sustained uncertain macroeconomic environment” stemming from “shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment” as a reason for the poor results.
Musk said on the earnings call that the company was in a “weird transition period” as it dealt with a changing regulatory environment that was shifting away from favoring EVs.
Read the original article on Business Insider