Tesla Posts Strong Revenue Growth but Misses Earnings Estimates, Sending Stock Lower
Tesla reported second-quarter revenue of $28.2 billion, a 26% increase year-over-year, driven primarily by vehicle sales and strong performance in energy generation and services. Despite the top-line growth, Tesla's stock fell after earnings due to missing adjusted net income expectations and rising capital expenditures (up 142% to nearly $5.8 billion). The company earned non-GAAP net income of $1.15 billion or $0.33 per share, below analysts' forecasts. Tesla delivered a record 480,126 vehicles in the quarter and produced over 451,758 units, with most sales coming from its Model 3 sedan and Model Y SUV. The company also reached a historic $100 billion trailing twelve-month revenue milestone for the first time. Management indicated continued high capital spending through this year and into 2027-2028 to support AI initiatives such as Robotaxi and Optimus, raising concerns about near-term profitability.
Tickers: $TSLA
Topics: automotive electric_vehicles profitability revenue_growth