Tesla shares have dropped 5% in after hours trading after a report that it is in talks with BMW to supply parts to its luxury cars.
The drop in the stock comes after BMW said it would invest $1 billion in the company, bringing its total investment in the luxury car maker to $11.5 billion.
The company has about 1,000 employees worldwide, but most of them work in the U.S. The reports comes after a week when Tesla and BMW have both declined to comment on the rumors.
Tesla, meanwhile, announced a deal to make two new electric sports cars, a new electric SUV, and a new luxury sports sedan.
The first vehicle is an all-electric sport utility vehicle.
It is expected to debut later this year and will be powered by an electric motor.
The second vehicle will be an all electric sports car.
Tesla’s stock fell more than 12% after the reports.