Tesla's global sales fell for the second consecutive quarter, with a 13% decrease compared to the previous year.
The company now faces a significant challenge to overcome a 110,000-car deficit in the second half to avoid an annual decline.
Analysts predict a second consecutive annual drop in vehicle sales for Tesla, with concerns about delays in launching more affordable models.
Despite sales challenges, Tesla's shares rose following the report, driven partly by Elon Musk's diversion towards a driverless taxi service and management changes within the company.