TSLA stock fell 15% as Q2 EPS missed estimates by 38%, raising questions about its $1.40 trillion valuation amid negative cash flow.
Tesla (NASDAQ:TSLA) shares dropped 15% after reporting Q2 non-GAAP EPS of $0.33, missing estimates of $0.5367 by 38%. The decline extended a 18.25% weekly loss as investors reacted to collapsing margins and a $1.09 billion free cash flow burn.
Revenue reached $28.24 billion, beating consensus by 7.1% on 25.5% YoY growth, supported by record deliveries of 480,126 vehicles. Energy storage deployments rose 41% YoY, while FSD subscriptions grew 56% to 1.48 million. Despite these gains, Tesla’s $43.52 billion cash reserve faces pressure from a 142% surge in CapEx.
The stock trades at 316x earnings with a 1.4% operating margin, fueling debate over its $1.40 trillion market cap. Analysts’ consensus target of $425.09 suggests 33% upside, but bears warn of further downside risks.