Tesla shares fell 18% over the past month as the company reported a significant earnings miss for the second quarter.
Tesla shares experienced an 18% monthly slide, reaching $308.05 on Friday after the company reported a disappointing second-quarter earnings per share (EPS) of $0.33, missing the $0.50 consensus. While the automaker achieved record deliveries of over 480,000 vehicles and a revenue beat of $28.24 billion, its operating margin compressed to 1% and free cash flow turned negative at $1.09 billion. The stock's decline contrasts with the performance of competitors Lucid Group and Rivian Automotive, which gained 21% and 9% respectively over the same period. Analysts have trimmed price targets for Tesla, though most maintained their ratings while awaiting further evidence on the company's pivot toward AI and robotics. Additional pressure stems from CEO Elon Musk's SpaceX ventures, which have shed 50% from their post-IPO peak. Investors are currently weighing Tesla's operational wins against concerns regarding thin margins and a projected 20% drop in U.S. electric vehicle sales following the expiration of federal tax credits.