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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
Approximately 7,000 Cybertrucks were sold in the first half of 2026, according to an estimate cited in The Atlantic.
Tesla accounted for more than half of the roughly 463,000 EVs purchased in the United States during that period.
Tesla’s market cap is $1.218 trillion, ranking it as the world’s most valuable automaker by market cap.
Tesla’s Supercharger network comprises about 50% of all fast‑charging plugs in the United States.
Investors cite Tesla’s focus on AI, autonomous‑driving software, robotics, and related services, which are emphasized over new vehicle launches in recent earnings discussions.