Tesla Q2 earnings recap: Stock falls after profit misses estimates - Business Insider

What the report says

Business Insider reported that Tesla shares fell more than 4% in after-hours trading on July 22 after the electric-vehicle maker’s second-quarter profit came in well below Wall Street expectations, even as revenue beat forecasts. The company posted $28.24 billion in revenue, helped by record quarterly vehicle deliveries, compared with analysts’ estimates of $26.31 billion. Adjusted earnings per share were 33 cents, short of the 50 cents analysts had expected.

Tesla described the quarter as strong across its vehicle, energy, services, manufacturing, infrastructure and AI efforts, according to the company’s earnings release cited by Business Insider. The report was the first since Elon Musk’s other major company, SpaceX, went public the previous month. On the analyst call, Musk did not address speculation about a possible SpaceX-Tesla combination, but he pointed to areas where the companies could work together, including Starlink connectivity for robotaxis.

Executives also emphasized heavy investment ahead. Musk said Tesla should increase capital spending as quickly as it can while avoiding unnecessary waste, while the company characterized the current period as its largest phase of investment. Discussion on the call included factory expansion, semiconductor and solar manufacturing, supply-chain constraints, the Cybercab, Tesla Semi plans and hardware upgrades for camera-equipped vehicles.

Business Insider also reported that Musk lowered expectations for a fast ramp-up of Optimus, Tesla’s humanoid robot, saying manufacturing would be difficult and production would begin slowly. On robotaxis, executives said Tesla was prioritizing a cautious rollout, saying the company had completed 380,000 miles of unsupervised robotaxi rides without “notable incidents.” The earnings miss matters because investors are weighing Tesla’s core EV profitability against its expensive bets on autonomy, robotics and AI.