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Tesla stock suffers double-digit drop on carmaker’s worst day in years
The Guardian • • general
Key Points:
- Tesla’s stock plummeted about 13.5% on Thursday, marking one of the largest single-day losses in the company's history amid concerns over high capital expenditures and weaker-than-expected profits.
- The company reported second-quarter earnings of 31 cents per share, falling short of the 51 cents per share expected by analysts, despite beating revenue predictions, which triggered the sharp selloff.
- Elon Musk faced investor skepticism over the slow rollout and uncertain timelines of Tesla’s Robotaxi and Optimus humanoid robot projects, both heavily promoted but not yet widely available.
- Tesla’s significant investments in robotics, autonomous vehicles, and AI led to $5.8 billion in spending in Q2 and a negative free cash flow of $1.1 billion, shifting investor focus away from its strong electric vehicle sales.
- Tesla was the worst-performing among the “Magnificent Seven” megacap stocks, which all declined Thursday, collectively wiping out $767 billion in market value amid broader tech sector concerns and rising inflation fears.
