Tesla Misses Earnings Estimate by 38% Despite Record Deliveries
Tesla (TSLA) reported second-quarter revenue of $28.24 billion, up 26% year-over-year and above analyst expectations. However, the company missed non-GAAP earnings per share estimates by a significant margin—$0.33 versus an expected $0.53—which led to a sharp decline in its stock price after hours. Despite record vehicle deliveries of 480,126 units (up 25% YOY) and strong growth in Full Self-Driving subscriptions, Tesla's profitability metrics deteriorated significantly. Operating income fell by 57%, operating margin narrowed to just 1.4%, and free cash flow turned negative at -$1.1 billion due to a surge in capital expenditures. CEO Elon Musk remains confident despite the earnings miss, citing progress on projects like Cybercab production and Robotaxi deployment across seven major cities. Tesla also confirmed that Optimus humanoid robots are entering first-generation production lines.
Topics: Earnings miss Elon Musk Tesla TSLA stock performance