Tesla shares fall 14% after weak Q2 earnings as Musk rejects China split rumors

Tesla reported second‑quarter operating profit of $398 million, far below the $923 million a year earlier and well under Wall Street’s $1.7 billion forecast. Revenue dropped $1.3 billion despite selling about 480,000 vehicles, a 25 % increase that was offset by lower prices, a less attractive model mix, higher costs and higher research spending. The disappointing results triggered a roughly 14 % decline in Tesla’s share price, the sharpest drop since the earnings announcement, and investors expressed growing impatience with the company’s performance.

In parallel, Elon Musk used his X account to denounce media reports that Tesla had been preparing to separate its China operations ahead of a possible merger with SpaceX, calling the story “fake news.” The Wall Street Journal had said Tesla advisers were considering options such as a spin‑off, sale or shutdown of its Chinese activities, but Musk said no such discussions had taken place. The denial came as Tesla celebrated reaching 10 million vehicles produced, while its Shanghai Gigafactory remains a key export hub for Europe, Canada and the Asia‑Pacific region.