Tesla Motors reported a $38 million loss in the third quarter this week, or 32 cents a share, according to GAAP.
Analysts had predicted the California-based electric car maker would report a 25-cent loss.
"Expectations may have gotten a bit too far ahead of reality," said Phil Gott, an auto technology analyst for IHS Automotive in a statement. "Once Elon Musk proved he could beat the odds, people have grown to expect that will always be the case."
Stock price dropped over $20, or 11.5 percent, to $155 during the first three hours of after-hour trading, according to USA Today.
Tesla predicted 5,000 Model S deliveries in Q3, and they company actually sold 5,500 vehicles, according to a company press statement.
"Results with somewhat slower ramp of Tesla S deliveries reinforce our view that Tesla had overshot in the past few months and is more properly valued at $141," said auto-industry analyst Brian Johnson at Barclays.
Musk's company plans to sell around 6,000 Model S sedans during the fourth quarter.
Though the Model S is Tesla's only vehicle being sold currently, its new Model X electric SUV will be available in 2014. A less expensive sedan is due in 2016 as well.
A major reason the electric car company didn't do so well could be because of two fires that occurred involving Model S vehicles.
Back on Oct. 2, a Model S burned after hitting road debris in Washington. Then on Oct. 17 in Merida, Mexico, a Model S drove into a roundabout, crashed through a concrete wall and hit a tree.
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