Tesla reported a decline in auto sales for the second straight quarter, causing shares to fall 8%.

The company posted a 16% drop in automotive segment revenue to $16.7 billion. CEO Elon Musk warned that a difficult period could lie ahead due to the expiration of tax credits for electric vehicles and fierce competition in key markets. Musk's political involvement is also raising concerns among investors, hurting the brand's image. Tesla hopes to improve sales by launching a more affordable model, but the outlook for the rest of the year remains uncertain.