Tesla stock tumbles 14% after profit miss; full-year capex spend of $25 billion confirmed
Tesla stock fell 14.5 percent on Thursday, closing at 319.69 dollars. This marks the lowest share price for the electric vehicle manufacturer since August 2025. Investors reacted to a second quarter earnings report that missed Wall Street targets for both profit and margins. While revenue reached 28.24 billion dollars, exceeding analyst expectations, the company posted adjusted earnings per share of 0.33 dollars, which fell short of the 0.50 dollar forecast.
The selloff follows concerns about heavy spending. CFO Vaibhav Taneja confirmed that full year capital expenditures will exceed 25 billion dollars. Tesla is putting significant cash into its AI data centers, the production ramp-up of the Cybercab, and the development of the Optimus humanoid robot. These massive investments raise questions about immediate returns, especially as the company continues to navigate a challenging auto market.
Operational updates provided some mixed signals. Tesla reports that the Robotaxi fleet is now active in seven major metropolitan areas, with plans for further expansion. Meanwhile, the company stated that Optimus production remains on track, though specific timelines for volume output or hardware updates remain unclear. Despite these efforts, analysts remain cautious about the timeline for commercializing these physical AI products.
Other factors influencing current performance include fluctuating demand in the United States, where the expiration of federal tax credits impacted sales. Conversely, the company saw strong results in Europe, where registrations more than doubled. Moving forward, the market will likely focus on whether Tesla can demonstrate clear progress and consistent profit improvements while managing its high rate of spending.