Tesla reported mixed second quarter results as revenue exceeded expectations while earnings fell short of Wall Street estimates.
Tesla reported second quarter revenue of $28.24 billion, a 26% increase from the previous year, though adjusted earnings per share of $0.33 missed the $0.50 estimate. The company's stock fell 4.6% in premarket trading following the report. While revenue grew, net income fell 5% to $1.11 billion as operating expenses rose 47% due to aggressive investments in artificial intelligence and research. The company is shifting its primary focus toward its driverless Robotaxi service and the production of Optimus humanoid robots. Tesla confirmed that its Robotaxi rollout has reached seven major metro areas, including Austin, Miami, Orlando, and Tampa. Additionally, the company reported a significant jump in energy storage deployments, which were 50% above first-quarter levels. Despite the mixed financial results, Tesla's free cash flow burn was less than analysts expected at -$1.09 billion. Capital expenditures soared 142% to $5.79 billion this quarter, as the company continues to fund its long-term product roadmap and infrastructure initiatives.