Tesla Motors Inc TSLA 1.56% shares plummeted nearly 9 percent on Thursday following the company’s Q2 earnings report. The company’s earnings per share (EPS) number actually beat Wall Street consensus estimates for the quarter, so why is the stock dropping?

Q2 Issues

The biggest issue with the Q2 earnings report appears to be the company altering its expected number of 2015 automobile deliveries estimate from 55,000 to a range between 50,000 and 55,000. Growth is the major selling point for Tesla’s stock at its current share price, and any indication that growth may not be as strong as expected is taken very harshly by the market.

Bank of America analyst John Murphy estimates that Tesla’s EPS loss of $0.48 is actually closer to a loss of $0.79 when regulatory credits and forex benefits are taken out of the equation.

Valuation

Even after the big drop, Tesla’s stock still looks…

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