U.S. stocks edged lower on Thursday following the release of Tesla’s Q1 earnings report. The electric vehicle maker disappointed observers by reporting a lower-than-expected first-quarter profit.
Futures on the S&P 500 fell by 0.62% on Thursday, while those on the Dow Jones Industrial Average declined by 0.39%. Contracts on the tech-heavy Nasdaq Composite Index sunk by almost 1%.
Tesla shares tanked by almost 7% during pre-market trading after the company reported lower-than-expected first-quarter earnings on Wednesday. The company’s gross profit margin was 19.3%, lower than Wall Street estimates of a 20.7% gross profit margin.
Following Tesla’s example were Ford and General Motors stocks, which declined by almost 2%. Stocks in fellow EV companies Rivian and NIO also fell by over 2%.
Major indexes closed relatively flat on Wednesday following the mixed corporate earnings reported by Netflix and Morgan Stanley. IBM shares were on the rise after the company adjusted earnings per share of $1.36, beating Wall Street estimates of $1.25 per share.
Oil futures declined on Thursday, with the U.S. benchmark West Texas Intermediate falling by approximately 1.5%. Investors also placed focus on this week’s economic data, with 245,000 jobless claims being filed.