Tesla shares drop after co-founder's departure and disappointing earnings

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Tesla shares fell on Thursday after the company announced the departure of a high profile exec, and a disappointing second quarter earnings report.

Tesla’s longtime chief technology officer , who helped create the company, is stepping down after 16 years, CEO Elon Musk told analysts on the earnings call Wednesday. The news followed the disclosure that Tesla reported a larger than expected loss — $408 million — in the second quarter.

Straubel's departure comes amid a tumultuous year for the electric car manufacturer as it struggles bringing its long-promised affordable Model 3 electric car to the mass market. In January, Tesla announced job cuts of 7% of its workforce, just six months after it cut 9% of its staff.

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