LanlanCC
07-24

Musk's statement at the performance meeting was filled with his usual all-in gambler style: "This year is a year of super large capital expenditure. I am confident that everything we invest in will yield incredible returns. Perhaps the best return on capital expenditure we have ever seen.

But the ruling given by the market was cruel: share prices plummeted 14.5% in a single day, evaporating about $200 billion in market capitalization.

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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