Tesla shares drop 20% after Q2 profit miss and surging expenses

Price Action
โดย The Motley Fool·Read original
Summary · why it matters

Tesla shares have fallen 20% since its July 22 second-quarter earnings report, dropping below $350 and out of the trillion-dollar club. While revenue beat Wall Street estimates, profit fell short as operating expenses jumped 47% year over year, driven by AI and R&D spending. Capital expenditures are projected to exceed $25 billion in 2026, and free cash flow was negative $1.1 billion in the quarter, with analysts forecasting an $11.4 billion full-year cash burn. The company is investing heavily in autonomous driving, with Robotaxi now operating unsupervised in six U.S. cities, and plans to ramp up Optimus robot production later this year, but the financial payoff remains uncertain. Tesla trades at a price-to-earnings ratio of 280, and even if that multiple halves in five years, earnings per share would need to grow 300% for the stock to double, a high bar that makes the stock unattractive at current levels according to the author.

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Artificial Intelligence▲ · 1 stocks
Electrification & Mobility▲ · 1 stocks
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