Tesla’s Q2 earnings fell short of expectations, slashing $130 billion from Elon Musk’s fortune as margins and cash flow weakened.
Tesla’s stock tumbled 18% to a 52-week low after its Q2 earnings report missed analyst estimates, wiping $130 billion from CEO Elon Musk’s net worth. The decline marked the company’s worst week since 2022, driven by rising costs and shrinking margins despite revenue growth.
Revenue rose 26% year-over-year to $28.23 billion, with automotive sales up 23% to $20.51 billion. However, operating expenses surged 47% to $4.35 billion, nearly erasing operating margins. Earnings per share fell to $0.33, well below the $0.54 consensus. Free cash flow turned negative at $1.1 billion, while cash and investments dropped $1.2 billion.
The company attributed the cash burn to a sequential doubling in capital expenditures. Shares have since rebounded 8.7% from their low, but the quarter’s weak performance raises concerns about profitability amid aggressive spending.