Sean McLain

Net profit tumbled 45% in the second quarter as the electric-vehicle leader continues to feel the impact of slower demand and stiffer competition.

WILMINGTON, Del—A Delaware judge who earlier this year tossed Elon Musk’s multibillion-dollar pay deal challenged the company’s argument that a shareholder vote overwhelmingly re-approving the original deal should change the court’s earlier decision. The judge’s comments bode poorly for Tesla whose lawyers were hoping to convince her to let Musk keep the record-breaking pay package with a renewed show of shareholder support. The judge, Chancellor Kathaleen McCormick, didn’t immediately rule and closed the daylong hearing, saying she would take the case “under advisement” and “it will not end here and now” as the plaintiff’s lawyer requested.

Rivian Automotive’s cost-cutting efforts had yet to show a major impact on its bottom-line in the second quarter. While the financial results for the three-month period were largely in line with Wall Street’s expectations, Rivian reported wider losses as the company continues to lose money on every vehicle it sells. Shares of electric pickup and SUV maker were down around 6% in after-hours trading Tuesday, after the company reported results.

Rivian Automotive's cost-cutting efforts have yet to show a major impact on the EV maker's bottom-line. Through Tuesday, Rivian stock was down roughly 30% for the year. Details from Rivian's results: + The company reported revenue of $1.16 billion, a net loss of $1.46 billion and an adjusted per-share loss of $1.13, all roughly in line with Wall Street’s expectations.

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The sharp drop in the value of preowned electric vehicles stands in contrast to the broader used-car market.

While investors applauded better-than-expected results, the EV maker under Elon Musk faces a big tab for tech bets, putting more scrutiny on its bottom line.

The new Scout Motors brand will also offer hybrids as it competes with Ford, Rivian and Tesla for a share of the truck market.

The world's second-largest automaker and the Silicon Valley startup are trying to address each other's core weakness.