Tesla shares are dropping 5% after the company reported a first-quarter loss.
The company also reported a profit of $1.27 billion.
Tesla said its net loss for the first quarter was $2.8 billion.CEO Elon Musk said in a statement that the loss was due to lower demand for the Model S sedan, which Tesla expects to ramp up production of later this year.
Tesla is now trying to turn the company around after a rocky start in 2017.
Tesla has seen its stock plummet in the past several months due to the company’s struggles with battery production.
Musk has been trying to push Tesla’s shares higher and he is currently at a record low, as investors are focused on Tesla’s upcoming Model 3.
Musk has said that he will be releasing a new car in the next few months, which will be an electric vehicle, and has said he is confident that Tesla will hit its revenue targets.