Tesla Q2 revenue rises 26% as profit and shares fall
Tesla's second-quarter results were a mixed bag: revenue grew 26% to $28.24 billion, but profits didn't keep up.
Earnings per share landed at $0.33, missing Wall Street's expected $0.51, and net profit dipped 5% from last year to $1.11 billion.
Investors weren't thrilled, sending Tesla shares down almost 5% after-hours.
Tesla gross margin drops, capex soars
Margins took a hit too: gross margin dropped to 16.8%, below the hoped-for 19.4%, as Tesla sold more affordable Model 3 and Y cars after retiring the pricier S and X models.
Operating expenses jumped by 47%, shrinking operating margin to just 1.4%.
Big spending continued: capital expenditures soared by 142% to $5.79 billion, and free cash flow turned negative at $1.1 billion, raising more questions about financial health this year as shares have already fallen 15%.