Tesla Stock Falls Over 30% Year to Date Amid Earnings Miss and Increased Capital Expenditures
Tesla's stock fell more than 15% on July 23 following its second-quarter earnings report, bringing the year-to-date decline over 30%. The drop was driven by a significant miss in adjusted EPS estimates, increased capital expenditures (capex), and tempered expectations for robotaxi progress. Tesla plans to spend $25 billion this year on capex as it ramps up production of its Optimus robot, expands its robotaxi fleet, builds AI infrastructure, and develops the TeraFab project. The company also scaled back its optimistic timeline for robotaxi deployment, with supervised rides still limited to two states. Additionally, Tesla's CEO Elon Musk acknowledged technical challenges in developing the Optimus robot and difficulties scaling production due to a lack of supply chain maturity. Despite strong delivery growth—up 25% year over year—and increased FSD subscriptions, revenue from high-margin regulatory credits dropped sharply by 67%, contributing to an EPS miss.
Tickers: $TSLA
Topics: Capital Expenditures Earnings Optimus Robot Robotaxi