Tesla’s Earnings Report Triggers Stock Sell-off
Tesla (NASDAQ: TSLA) reported a year-to-date stock decline of over 31% following disappointing earnings for Q2, where net income fell by 5% to $1.1 billion, despite a 26% increase in revenue to $28.2 billion. After the report, shares plummeted nearly 15% to below $320, signaling investor concerns amid higher competition and decreased margins.
Additionally, Tesla’s free cash flow turned negative at $1.1 billion, contrasting sharply with a positive cash flow of $146 million in the same quarter one year ago. The company’s capital expenditures in Q2 reached $5.8 billion, more than double the $2.4 billion spent during the previous year, raising further concerns about its financial strategy.
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