Tesla Stock Falls 18% in Worst Week Since 2022 Amid Concerns Over Spending and Margins
Tesla's stock dropped by 18% following its second-quarter earnings report, marking the worst one-week performance since 2022. Despite reporting strong revenue of $28.23 billion with electric vehicle sales contributing over $20.51 billion, Tesla faced declining operating margins and rising expenses. Operating margins fell to 1.4%, down from 4.1% a year ago, while capital expenditures more than doubled in the quarter. The company also reported negative free cash flow of $1.1 billion and plans for significant borrowing up to $30 billion this year. Elon Musk's net worth has dropped below one trillion dollars due partly to Tesla’s stock decline and falling SpaceX shares. Investors are concerned about Tesla's aggressive spending on AI, self-driving technology, and the Optimus robot line, which may not yield immediate returns. Tesla is reorganizing its Fremont factory for robot production while halting Model S/X manufacturing lines. The market appears to be losing confidence in Musk’s vision as financial pressures mount.
Tickers: $TSLA
Topics: Elon Musk net worth S&P 500 stock performance Tesla