Tesla shares fall 14% after Q2 profit miss, cash burn
Tesla's stock just took a 14% dive, its biggest one-day fall since June 2025, after missing profit expectations for the second quarter.
The company earned $0.33 per share (Wall Street wanted $0.51), even though it sold over 480,000 vehicles and pulled in $28.2 billion in revenue.
But here's the kicker: Tesla burned through $1.09 billion in cash this quarter, its first negative free cash flow in two years.
Tesla says spending could top $25B
Tesla spent a hefty $5.8 billion last quarter, pouring money into AI projects, Optimus robots, and those futuristic Cybercabs Elon Musk keeps talking about.
Tesla says spending could top $25 billion this year and says, "This is a massive capex year."
But analysts aren't sure these bold moves will pay off soon, so JPMorgan and Mizuho both cut their price targets for Tesla stock.
Still, even with the recent dip, Tesla shares are down 17% through Wednesday's close.