Tesla Reports Earnings Miss, Stock Drops Sharply
Tesla (TSLA) reported second-quarter earnings that fell short of expectations despite revenue exceeding forecasts. The electric vehicle maker's profit dropped to 33 cents per share from last year’s 40 cents and missed the Wall Street estimate of 55 cents. Revenue rose 26% to $28.2 billion, but gross margins declined due to lower regulatory credit income and a drop in average selling prices. The company reported negative free cash flow for the first time since early 2024, burning through over $1 billion as capital expenditures more than doubled to nearly $6 billion this quarter. Tesla’s CFO confirmed plans to spend over $25 billion on capex in 2026 and expects continued increases due to investments in Robotaxi, Optimus robots, and chip manufacturing. Tesla shares fell almost 15% following the report, reaching a level not seen in nearly a year. The stock has lost 29% of its value since January 2026, becoming the worst performer among major tech stocks.
Tickers: $TSLA
Topics: capital expenditures Optimus Robotaxi stock decline Tesla