TSLA shares drop after Q2 revenue tops estimates but EPS plunges 39% on a 57% operating income decline.
Tesla reported Q2 revenue of $28.236 billion, beating estimates by 7%, driven by record deliveries of 480,126 vehicles. However, earnings per share missed by 39% as operating income collapsed 57% year over year, pushing free cash flow to negative $1 billion.
The company’s trailing P/E ratio stands at 311, while automotive gross margins remain under pressure. Vehicle sales reached $20.006 billion, but energy storage and services revenue surged, highlighting shifting growth drivers. Analysts await Q3 earnings on October 21 for margin stabilization signals.
Shares fell 13.23% over the past month and 23.89% year to date, reflecting Wall Street’s divided outlook. Bulls point to a record order backlog, while bears focus on deteriorating profitability and rising capex.