Investors reacted unexpectedly on Thursday as Tesla shares slid more than 2 percent, falling to nearly 377 dollars per share during early trading on the NASDAQ. The dip occurred despite some positive operational news from the Austin based automaker, specifically regarding its ability to finally clear out a massive mountain of unsold inventory that had plagued the company since the beginning of the year.

During a recent call with shareholders, CEO Elon Musk highlighted that Tesla managed to sell more electric vehicles than it actually produced for the second consecutive quarter. This shift allowed the company to erase aglut of over 50,000 vehicles that had been sitting idle following a mismatched first quarter where production far outpaced consumer demand. Musk expressed confidence in the current trajectory, claiming that appetite for Tesla models is now growing so rapidly that it significantly exceeds their current manufacturing capacity.

Beyond just moving metal off lots, Musk leaned heavily into the future of autonomy, citing Full Self Driving technology as the primary engine driving new interest in the brand. He pointed toward the rollout of the two seat Cybercab and an expanded Robotaxi network as key milestones, asserting that Tesla currently faces no real competition in the autonomous space while they push for regulatory approvals in several international markets.

Financially, the numbers remained steady but failed to spark a rally. For the first nine months of 2026, Tesla posted revenues of over 28 billion dollars and adjusted earnings per share of 48 cents. While these figures aligned almost perfectly with analyst expectations, they weren’t enough to offset whatever broader market concerns led traders to sell off shares even as production efficiency improved.