TSLA shares fall as operating income drops 57% and free cash flow hits negative $1.09 billion despite record 480,126 vehicle deliveries.
Tesla reported Q2 revenue of $28.24 billion, up 25.5% year over year, driven by record deliveries of 480,126 vehicles. However, operating income plunged 57%, and free cash flow turned negative at $1.09 billion, compressing margins to 1.4%.
The company’s energy storage deployments rose to 13.5 GWh, and active FSD subscriptions reached 1.48 million, up 56% year over year. Services and other revenue grew 50% at a 14.1% gross margin, but the stock fell 18.5% from its filing price of $379.50 to $309.22.
Analysts see $401 as a consensus target, but valuation hinges on execution of Robotaxi and Optimus, with prediction markets assigning only 15% odds for meaningful Optimus shipments this year.