Tesla's free cash flow fell for the first time in more than two years as the electric-vehicle maker supercharged spending with $5.8 billion in capital expenditures to expand its footprint in artificial intelligence and robotics.
The company reported negative free cash flow of $1.1 billion for the second quarter.
Revenue grew to $28 billion, up 26% from the year before. Revenue from its automotive business increased 23% from the year prior. The company also reported $100 billion in revenue on a trailing 12-month basis for the first time.
Tesla's energy business revenue, which comes from selling industrial and residential battery storage, was $3 billion for the quarter, up 13% from the year before.
Tesla shares fell 4% in after-market trading Wednesday.
Tesla's latest results come as the electric-vehicle industry navigates the downturn in U.S. sales, as well as continued competition from automakers in China.
The company is working to pivot its business away from primarily selling EVs toward autonomous vehicles and robotics, neither of which is currently for sale. It is also growing subscriptions to its FSD software, which it sells to Tesla drivers for $99 a month.
Tesla sold 480,126 electric vehicles globally in the second quarter, up 24.9% from the same period last year, the company said earlier this month. Much of that growth came from Europe -- where fuel prices have surged amid the war in Iran -- and China .
U.S. sales fell around 20% year-over-year in the second quarter, according to industry data provider Motor Intelligence.
Among its largest capital expenditures is a planned chip-manufacturing facility called Terafab, which it is developing in partnership with Musk's rocket company SpaceX and Intel. Investors and analysts have speculated that Musk could try to merge SpaceX and Tesla into a single AI-focused company.
The company said it started volume production of its autonomous Cybercab, which doesn't have a steering wheel or pedals. That vehicle has limited use in Tesla's autonomous Robotaxi ride-hailing service and isn't yet available for purchase.
In June, America's top vehicle-safety regulator, the National Highway Traffic Safety Administration, proposed eliminating the requirement that autonomous vehicles have manual brake pedals -- a change seen as highly beneficial to Tesla's plans.
This month, Tesla expanded the Robotaxi service to a limited area of Miami, Orlando and Tampa, in addition to its limited operations in parts of Austin, Dallas and Houston.
(END) Dow Jones Newswires
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