Tesla reported a wider-than-expected loss and less revenue than anticipated during the first quarter as demand for its electric cars waned after the company lost a valuable tax credit for buyers on Jan. 1.

Executives braced investors for another loss in the second quarter before returning to profitability in the second half of the year.

Here’s what Tesla reported, versus what analysts expected based on average estimates compiles by Refinitiv:

  • Loss per share on an adjusted basis: $2.90 versus 69 cents expected
  • Revenue: $4.54 billion versus $5.19 billion expected

On an unadjusted basis, Tesla lost $702.1 million, or $4.10 a share during the quarter ended March 31, compared with a loss of $709.6 million, or $4.19 a share during the same period last year.

Its shares, which closed down by about 2 percent Wednesday, were about flat after the markets closed.

The company previously warned that first-quarter income will “be negatively impacted” because of “lower than expected delivery volumes and several pricing adjustments.” That may be one reason shares remained flat after the quarterly update– investors already anticipated some disappointments.

Tesla said earlier this month it delivered 63,000 cars during the quarter, well below analysts’ consensus estimates of 76,000.

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