Shares of Tesla (TSLA) - Get Report fell more than 7% on Tuesday as Chinese EV maker Nio (NIO) - Get Report reported quarterly results in which it posted weaker sales and a larger loss than expected, and announced it would cut 2,100 jobs.
Shares of Nio fell more than 25% in trading on Tuesday, with the company blaming "tempered market conditions" for the poor performance. Sales fell 7.9% in the second quarter compared to the first quarter, although they did rise year over year. China is one of Tesla's most important markets outside the U.S.
On Monday, Tesla CEO Elon Musk was also accused in a lawsuit of urging investors to approve Tesla's purchase of solar panel installer SolarCity in 2016 at a significant premium despite knowing the company had a precarious cash position. Musk was the chairman and the largest stakeholder in Solar City at the time, and Tesla shareholders have filed a case against Tesla's board for approving the acquisition.
Tesla has rejected the allegations.
Tesla shares are down 33% so far this year.