TSLA drops nearly 15% post-earnings as $28.2B revenue growth fails to offset declining net income and negative free cash flow.
Tesla’s stock fell sharply after reporting second-quarter earnings, with shares down nearly 15% in a single session to below $320. Revenue climbed 26% year-over-year to $28.2 billion, but net income declined 5% to $1.1 billion amid shrinking margins and rising competition in the EV sector.
Free cash flow turned negative at $1.1 billion, a sharp reversal from the $146 million positive figure a year earlier. Capital expenditures surged to $5.8 billion, more than double the $2.4 billion spent in the prior-year period, raising concerns about profitability as the company invests heavily in future growth.
The sell-off reflects investor unease over Tesla’s ability to sustain earnings growth as its core EV business faces margin pressure and elevated spending on automation and expansion.