# Tesla shares plunge 14.5% losing $200 billion in worst day since 2025

**Published:** 2026-08-06T15:57:18.386Z  
**Topic:** Tesla  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/3fa439e5-072a-4763-b1f1-b19c957ff1bc

Tesla stock fell 14.5% on Thursday, erasing about $200 billion in market value as AI‑heavy capex spikes, marking its steepest single‑day drop since March 2025.

Tesla’s shares tumbled 14.5% on Thursday, wiping roughly $200 billion off its market capitalization – the steepest one‑day decline since March 2025 – after the company disclosed a 142% year‑over‑year jump in Q2 capital spending to $5.79 billion【2】. The sell‑off underscores investor anxiety over a massive AI‑focused capex program that could strain cash flow and margins.

| At a glance | |
|---|---|
| Stock move | –14.5% |
| Market value loss | ~$200 billion |
| Q2 capex | $5.79 billion (↑142% YoY) |
| Expected annual capex | >$25 billion |

## Capital spending surge drives the sell‑off  
Tesla reported Q2 capital expenditures of $5.79 billion, a 142% increase from the same quarter a year earlier, and said it expects to spend more than $25 billion this year – nearly three times last year’s $8.53 billion budget【2】. The bulk of the outlay is earmarked for AI‑related semiconductor production and the Optimus humanoid robot, projects Musk has called “the number one most critical thing to get done”【1】. While the automotive division still generated $20.52 billion in revenue, up 23% YoY, the surge in AI‑related capex pushed the company into negative free cash flow for the first time in over two years【3】.

## Market reaction and comparative pressure  
The sharp rise in spending coincided with a broader market wobble in AI‑heavy tech stocks; Alphabet’s shares fell 7.1% after announcing a $195‑$205 billion capex outlook for the year【2】. Investors appear to be pricing in the risk that such massive outlays may not translate into near‑term earnings, especially as Tesla’s automotive gross margin slipped to 16.3% versus an expected 18.04%【3】. By contrast, Alphabet’s cloud revenue jumped 82% to $24.8 billion, delivering a margin boost that helped offset its own spending surge【2】. The divergent outcomes highlight the uncertainty surrounding the payoff of AI‑driven capex across the sector.

## What to watch  
- **Q3 earnings release (early August)** – will Tesla’s cash burn narrow as AI hardware production ramps?  
- **First‑generation Optimus production start** – timeline and unit cost will signal whether the robot can become a revenue driver.  
- **Capex guidance updates** – any revision to the $25 billion annual spend will affect valuation assumptions.

The market’s reaction to Tesla’s capex surge illustrates the fine line between investing in future AI capabilities and preserving short‑term financial health. Whether the AI5 chip and Optimus robot can deliver the “incredible returns” Musk promises will be the key test for the company’s valuation going forward.

## Sources
1. Investopedia — [Tesla's Stock Had One of Its Best Days in Months. Here's Why It Popped](https://www.investopedia.com/tesla-s-stock-had-one-of-its-best-days-in-months-here-s-why-it-popped-tsla-11950831)
2. CNBC — [Tesla, Alphabet lose hundreds of billions in value in post-earnings stock plunge](https://www.cnbc.com/2026/07/23/tesla-tsla-alphabet-googl-stock-today.html)
3. New York Post — [Tesla profit disappoints as Elon Musk’s AI spending surge leads to cash burn](https://nypost.com/2026/07/22/business/tesla-profit-disappoints-as-elon-musks-ai-spending-surge-leads-to-cash-burn/)

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Cite as: TrendWatcher, "Tesla shares plunge 14.5% losing $200 billion in worst day since 2025", https://www.trendwatcher.in/article/3fa439e5-072a-4763-b1f1-b19c957ff1bc