Tesla shares drop 14% after earnings showed $1.1B negative FCF
Tesla's shares dropped 14% on Thursday after its latest earnings report, showing negative free cash flow of $1.1 billion, even though revenue was up 26% from last year.
Investors got spooked when Elon Musk admitted that building the Optimus humanoid robot is proving much harder than expected, with issues around durability and dexterity.
Musk called it their "hardest product to scale manufacturing."
Musk net worth falls to $718B
This stock slide hit Musk's net worth hard, dropping it to $718 billion from a previous high of $1.4 trillion.
Musk also faced criticism for using teleoperated robots and sped-up demos, raising questions about how real the robots' abilities actually are.
During the call, Musk briefly mentioned a possible Tesla-SpaceX merger but didn't share any details.