TSLA misses EPS estimates by 38% and reports negative $1.09 billion free cash flow, eroding investor confidence.
Tesla shares closed at $313.03 on July 24, 2026, down 30.39% year-to-date, despite record Q2 deliveries of 480,126 vehicles and $28.24 billion in revenue. The decline follows a 38.51% EPS miss, with non-GAAP earnings at $0.33 versus a $0.5367 estimate.
Operating margins compressed to 1.4% as expenses surged 47% to $4.35 billion, while free cash flow turned negative at $1.09 billion. The stock fell 14.52% on earnings day and another 17.81% over the following week, with short sellers booking $4.3 billion in mark-to-market gains.
Wall Street’s consensus target of $403 implies 29% upside, but only 49% of analysts remain bullish. Reaching $500 would require auto gross margins recovering to 21% and sustained traction in Cybercab and FSD adoption.