Tesla shares fell more than 7 percent in a single day despite the company reporting record second-quarter deliveries that exceeded Wall Street expectations.
The decline marked the stock's worst single-day performance in a year. Analysts linked the sell-off to investors taking profits following a recent rally in the shares.
Market participants are shifting attention toward Tesla's plans in Artificial Intelligence, robotaxi services and self-driving technology. These areas are now seen as key drivers of future growth.
The electric vehicle maker had announced the strong delivery figures earlier, yet the positive results did not prevent the sharp drop in its share price.