Tesla shares are trading lower Thursday after it reported Q2 adjusted earnings below Wall Street estimates on Wednesday after the bell.

Tesla shares are trading in a narrow range ahead of Q2 earnings, with a bearish setup and mixed Edge Rankings keeping traders alert.

Tesla delivered record units in Q2, but whether that translated into profit remains to be seen due to thin matgins and cash burn.

Shares fell 2.8 per cent after the closing bell on Wall Street

Tesla reported second-quarter profits of US$1.1 billion, down about 5 per cent from the year-ago level.