Tesla Q2 earnings miss triggers sharp stock plunge and cash‑burn worries
Tesla reported second‑quarter revenue of $28.2 billion, up 26% year‑over‑year, driven by 480,126 vehicle deliveries, a 25% increase. However, operating margin fell to 1.4% from 4.1% a year earlier and operating expenses rose 47%, leading to a negative free cash flow of $1.1 billion. The company guided $25 billion of capital expenditures for the year and said it could borrow up to $30 billion. Analysts flagged slower progress on the Optimus humanoid robot and the robotaxi service, raising cash‑burn concerns. Following the results, Tesla’s shares dropped about 18% in a week, hitting around $303 and forming a “death‑cross” technical pattern on the daily chart. Deutsche Bank cut its price target to $420, citing the same headwinds, while RBC Capital kept an “outperform” rating but lowered its target to $480, citing long‑term synergies with SpaceX.
The combination of weaker margins, higher expenses and delayed AI‑driven projects has heightened bearish sentiment despite the double‑digit revenue growth.
Entities: Deutsche Bank · Elon Musk · Optimus humanoid robot · RBC Capital · Robotaxi service · SpaceX · Tesla Inc. · Tesla, Inc. · Waymo
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] Tesla delivered 480,126 vehicles in Q2, a 25% increase YoY. (Tesla Q2 earnings report)
- [○ 1 SOURCE] Tesla Q2 earnings per share were $0.32, down 3% year‑over‑year. (Tesla Q2 report)
- [○ 1 SOURCE] Tesla’s stock fell to around $307, breaking key technical support levels and prompting a bearish outlook. (Technical market analysis)
- [● 2 SOURCES] Tesla Q2 revenue was $28.2 billion, up 26% year‑over‑year. (Tesla Q2 earnings report)
- [○ 1 SOURCE] Scaling of the Optimus humanoid robot is progressing more slowly than projected. (Analyst commentary)
- [● 2 SOURCES] Tesla’s free cash flow turned negative, $1.1 billion in Q2. (Tesla Q2 earnings report)
- [● 2 SOURCES] Tesla’s robotaxi rollout is slower than expected, with delays cited by analysts. (Analyst commentary)
- [● 2 SOURCES] Tesla guided $25 billion of capex for the year and said it could borrow up to $30 billion. (Tesla Q2 earnings report)
- [○ 1 SOURCE] Tesla’s operating margin fell to 1.4% in Q2, down from 4.1% a year earlier. (Tesla Q2 earnings report)
- [○ 1 SOURCE] Tesla’s stock chart formed a death‑cross pattern on July 23, indicating a bearish technical signal. (Technical analysis article)
- [● 2 SOURCES] Tesla’s share price dropped about 18% in a week after the earnings report, falling to roughly $303. (Market reaction reporting)