The article discusses the decline in Tesla’s stock price following its second-quarter earnings report. It highlights concerns about the electric vehicle (EV) market and the potential impact of a recession on demand. Key points include: Tesla reported better-than-expected earnings but missed revenue estimates, causing a 6.6% drop in its stock price. Analysts raised concerns about softening demand for EVs due to rising interest rates and a potential recession. Tesla’s automotive gross margins fell to 27.9% from 32.9% a year earlier, indicating cost pressures. The company aims to start production of its Cybertruck in mid-2023 and is working on a more affordable vehicle. However, analysts warn that a recession could dampen demand for Tesla’s vehicles, especially its higher-priced models. The article highlights the challenges Tesla faces in maintaining growth and profitability in a potentially contracting EV market.