**Tesla Reports Significant Earnings Decline**
Tesla (NASDAQ: TSLA) experienced a 15% drop in share price on Thursday, closing at $319.69 after reporting a 57% decline in second-quarter operating income, amounting to $398 million. Despite achieving record revenue of $28.2 billion and delivering 480,126 vehicles—its best second quarter ever—operating margins fell from 4.1% to 1.4%. The consensus among 44 analysts remains a “buy,” with an average price target of $412, which is approximately 29% above the recent close.
**Key Financial Highlights**
The second-quarter revenue marked a 26% year-over-year increase, pushing Tesla’s trailing-12-month revenue past $100 billion for the first time. However, the company faced a cash burn, reporting negative free cash flow of $1.1 billion, driven by rising capital expenditures that more than doubled to $5.8 billion. Although revenue from services and energy storage saw increases of 50% and 41% respectively, these segments still represent a small portion compared to Tesla’s automotive revenue.
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