LanlanCC
07-24

Tesla Q2 recorded revenue of $28.5 billion and delivered a record high of 480,000 vehicles. But the adjusted EPS was only 0.33 dollars, significantly lower than Wall Street's expectations of 0.50 to 0.53 dollars.

Operating expenses soared 47% to $4.35 billion, and operating profit margin plummeted to 1.4% from 4.1% in the same period last year. Capital spending surged 142% to $5.79 billion, and CFO Vaibhav Taneja confirmed that capital spending for the whole year would exceed $25 billion.

Tesla Plunges 14.5% Post-Earnings: Can AI Spending Burn Rate Be Sustained?
Tesla tumbled 14.52% after reporting Q2 operating margins collapsing to 1.4% and free cash flow turning negative, as capital floods into AI and Robotaxi initiatives. Management frames the pivot as a long-term bet, but Wall Street questions whether core automotive profitability is being systematically diluted. With Alphabet reporting massive capex the same day, the "heavy investment, slow returns" narrative across mega-cap tech faces mounting pressure. With valuation still anchored to AI rather than autos, is this selloff a risk reset or a trend reversal?
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