Tesla’s Q2 EPS fell 38% below estimates as operating margin dropped to 1%, triggering an 18% share decline despite revenue growth.
Tesla’s second-quarter earnings disappointed as non-GAAP EPS of $0.33 missed consensus by 38.51%, despite revenue of $28.24 billion beating estimates by 7.1%. Operating margin compressed to 1.4% as expenses surged 47% to $4.35 billion.
The miss highlights growing skepticism over Tesla’s AI and robotics pivot, with prediction markets pricing shares at $316 and assigning only 15% odds to its Optimus robot reaching commercial release this year. Analysts remain divided, with Wedbush’s Dan Ives maintaining a $600 price target.
Shares fell 18% following the report, reflecting investor concerns over profitability amid aggressive spending. Tesla’s valuation hinges on its AI and autonomous ambitions, but near-term earnings struggles weigh on sentiment.