Tesla shares fell 6% in premarket trading on Thursday after the company reported a second straight quarter of declining automotive sales.

Elon Musk’s electric carmaker reported a top and bottom line miss on second-quarter results, noting that automotive revenue fell 16% year-on-year to $16.7 billion.

On an earnings call, Musk said Tesla “probably could have a few rough quarters” ahead as a result of the expiration of federal electric vehicle tax credits.

“I am not saying that we will, but we could,” Musk said.

Tesla has been facing rising competition in key markets like China and Europe, especially from lower costs Chinese electric vehicle players.

Data from the European Automobile Manufacturers Association, or ACEA, released on Thursday show Tesla’s new car registrations, declined in June in Europe.

Tesla shares have been hammered this year with the stock down nearly 18% to date, not including the Thursday premarket move.

Along with Tesla’s core auto business coming under pressure, Musk’s own political activity has been in focus. 

The tech billionaire played a key role at the Department of Government Efficiency, or DOGE, under President Donald Trump’s administration and has endorsed Germany’s extreme anti-immigrant AfD party. In recent months, the two former allies have clashed over the president’s spending bill. Musk has since said he is forming his own political party.

Some investors have urged the billionaire to step away from politics, for fear that his involvement is hurting Tesla’s brand and sales.

This is a developing story. Please check back for more.