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Tesla posted record $28.2 B revenue but a 35% earnings miss and negative free cash flow, sending the share price down 14.5% to $319.69.
Tesla reported Q2 2025 revenue of $28.24 billion, up 26% YoY, while non‑GAAP earnings per share fell to $0.33, 35% below Wall Street’s $0.51 estimate, prompting a 14.5% plunge in the stock to an 11‑month low【2】.
| At a glance | |
|---|---|
| Revenue | $28.24 B (up 26% YoY) |
| Deliveries | 480,126 vehicles (beat consensus) |
| EPS (non‑GAAP) | $0.33 (35% miss) |
| Capex | $5.79 B (up 142% YoY) |
The record revenue topped analysts’ $25.71 B expectation, driven by a 480,126‑vehicle delivery count that exceeded the 406,600 consensus. However, operating income slumped 57% to $398 million, compressing the operating margin to 1.4% from 4.1% a year earlier. GAAP operating margin fell in line with the margin squeeze, reflecting higher spending on AI, robotics and autonomy projects【2】.
Capital expenditures surged 142% to $5.79 billion, pushing free cash flow negative at $1.09 billion—the first cash‑burning quarter since early 2024. CFO Vaibhav Taneja flagged 2026 as a “massive capex year,” with full‑year spending expected to exceed $25 billion, underscoring the cost of Tesla’s AI and robotaxi ambitions【2】. Despite the cash outflow, most analysts kept buy ratings, trimming price targets but betting on long‑term AI upside rather than short‑term auto demand【2】.
Tesla shares closed at $319.69, erasing over $140 billion in market value in a single session. Analysts’ 12‑month target range now spans $130 to $600, reflecting divergent views: some see a shrinking‑margin automaker, others a high‑margin AI and robotaxi platform【2】. The split highlights the market’s uncertainty over whether Tesla’s heavy AI investment will translate into sustainable earnings.
Tesla’s ability to convert its record deliveries and AI spending into profitable growth will determine if the current stock dip is a temporary correction or the start of a longer‑term valuation shift.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 2, 2026 · How we report
On a Monday afternoon, a stolen blue Tesla drove onto the Pacific Beach boardwalk in San Diego, critically injuring a 25-year-old woman. The driver, suspected of being under the influence, was fleeing a police pursuit and was later detained by bystanders.
The incident where a stolen Tesla drove onto the Pacific Beach boardwalk and struck a woman occurred on a Monday afternoon around 12:40 p.m., near the 700 block of Thomas Avenue.
Avio Coach Craft, a Tesla Approved Body Shop, offers collision and structural repair, cosmetic paint repair, dent repair, bumper and panel repair, glass replacement, and wheel and rim repair for Tesla vehicles, including Model S, Model 3, Model X, and Model Y.
Avio Coach Craft was among the first collision repair facilities to become Tesla Approved, building on years of experience that included helping develop repair methods for some of Tesla's earliest vehicles.
The Tesla boardwalk incident highlights existing concerns in Pacific Beach about unauthorized motorized vehicles in crowded pedestrian areas, following a fatal e-bike collision and an incident where a pickup truck was driven onto the beach sand.