Accra:Tesla's recent unveiling of a futuristic flying car and impressive vehicle delivery numbers did not prevent a drop in its stock price, as the company faces challenges in convincing investors of its long-term growth prospects.

According to Anadolu Agency, despite presenting an innovative flying version of its two-seater Roadster sports car, Tesla's stock has been on a downward trend. The shares have fallen over 18% since the beginning of the year, with a 3.57% decline in September and an additional 7.3% drop last week.

The showcased flying Roadster uses 10 nozzles and ultra-high-pressure air tanks, allowing it to perform impressive stunts such as climbing steep ramps, remaining inverted thanks to suction power, executing midair somersaults, and landing after leaping over parked cars. Tesla CEO Elon Musk highlighted the car's capability to reach speeds of about 97 kilometers per hour in under one second.

Despite these advancements, analysts express concerns about Tesla's substantial investments in technologies like robotaxis, the humanoid Optimus robot, and artificial intelligence infrastructure, which could obscure the company's path to sustainable revenue. Financial apprehensions are also evident in the debt market, where Tesla's five-year credit default swap spread has risen to 188.1 basis points, the highest level since May 2023.

Investors are now focused on Tesla's third-quarter earnings, set to be released on Wednesday after US markets close. The company is expected to report quarterly earnings of $28 billion with earnings per share of $0.45. This follows Tesla's robust production numbers, as it manufactured 464,391 units, a 3.8% increase year-on-year, and delivered 486,532 vehicles. Additionally, Tesla's car sales in the EU surged 65.9% to 142,165 units from January to August, with a 52.7% rise in August alone, securing 1.9% of the total car sales in the region.