Tesla stock fell 14.5% to $319.69 on Thursday after the company reported second-quarter earnings that missed Wall Street expectations.
Tesla stock experienced its worst intraday decline in over a year on Thursday, falling 14.5% to $319.69. The sell-off followed a second-quarter earnings report where the electric vehicle maker missed analyst estimates for both earnings per share and adjusted EBITDA, despite a 26% year-over-year revenue increase to $28.24 billion. Investors are currently weighing the company's heavy capital expenditures against its long-term goals in artificial intelligence. While Tesla is spending aggressively on the Optimus humanoid robot and the Cybercab Robotaxi service, the high cash burn remains a primary concern for shareholders. The company reported a negative free cash flow of $1.1 billion for the quarter. Despite the earnings miss, Tesla saw a significant jump in deliveries and energy storage deployments. However, analysts noted that the market is seeking tangible proof of return on investment for the company's AI initiatives. Short sellers benefited from the decline, collecting approximately $4.12 billion in one-day mark-to-market profits as the stock hit its lowest close since August 2025.