Elon Musk’s electric car company Tesla Motors took a downhill slide on the stock market Thursday morning.
The 9 percent drop in shares came in response to Musk’s announcement Wednesday that the company experienced a net loss of $49.8 million for the first quarter, reports The Wall Street Journal.
Musk explained in a letter to shareholders that the drop in quarterly revenue was a result of the company’s aggressive research and development campaign.
The Silicon Valley billionaire expects costs to continue to rise over the next quarter, by about 30 percent for research and development and 15 percent for selling, general and administrative costs. Overall, he plans to invest between $680 and $850 over the next year.
Much of the investment funds are going towards Tesla expansion in to China, the construction of its massive battery plant, the “Gigafactory,” and the development of its new Model X vehicle.