Tesla Stock Dumps as Earnings Show 20% Slide
Earnings post big miss
SpaceX & Tesla merger?
Tesla Shares Slide 5% as Mixed Earnings Fail to Inspire Confidence
Morgan Stanley analysts said that Tesla's accelerating capital expenditure cycle is a "necessary investment" to maintain its leadership in autonomy and robotics.
The firm said investors are increasingly looking for “tangible” milestones from Tesla's robotaxi and Optimus programs as the company pours billions into AI initiatives.
Canaccord analysts echoed that view, saying they want to see meaningful robotaxi deployments over the next six months as Tesla seeks to prove its long-term AI strategy.
Tesla delivered a classic mixed bag of results that left investors underwhelmed. Shares of the electric vehicle giant fell roughly 5% in after-hours trading as the company reported higher revenue alongside a sharp miss on earnings and thinner profits. Elon Musk’s ambitious vision for the future did little to offset concerns about the present.
📉 Profits Hit the Brakes
Tesla TSLA ... posted revenue of $28.2 billion, beating Wall Street expectations. That top-line strength, however, could not mask the weakness underneath. Earnings per share came in at just 33 cents, well below the consensus range of 52 to 55 cents. Net profit totaled $1.1 billion, down about 5% from the same period a year earlier. Operating profit fell even more sharply, dropping to $398 million from $923 million in the prior year.
The company delivered a record 480,000 vehicles during the quarter, a 25% increase year over year. Selling more cars is positive on the surface. Making significantly less money on each one is what investors noticed first. Automotive margins remained under pressure, reflecting the ongoing reality of a more competitive EV market and the costs of scaling production.
🤖 AI Dreams Aren’t Cheap
Tesla’s biggest expense is no longer its current business. It is the future it is...
