Tesla stock tumbles 14% after profit miss; full-year capex spend of $25 billion confirmed - Yahoo Finance

What the report says

Yahoo Finance reported that Tesla shares fell sharply Thursday after the electric-vehicle maker’s second-quarter results missed key profit expectations, despite stronger-than-forecast revenue. The stock closed down 14.5% at $319.69, its lowest close since August 2025, after Tesla posted revenue of $28.24 billion, above Bloomberg consensus of $26.32 billion, but adjusted earnings of $0.33 per share versus an expected $0.50. Adjusted EBITDA was also below estimates.

The report said investors focused on Tesla’s cash use and heavy spending plans tied to its “physical AI” strategy, including Optimus humanoid robots, Robotaxi/Cybercab production and AI data-center buildout. Free cash flow was negative $1.09 billion, better than analysts had expected, while CFO Vaibhav Taneja confirmed 2026 capital expenditures would exceed $25 billion. CEO Elon Musk said the company would keep scaling Robotaxi service quickly, while acknowledging safety would constrain expansion.

Tesla said Optimus production remains planned for later this year, but Yahoo noted the company did not give details on when a newer version would be shown or when high-volume production might begin. The company also said its Robotaxi program had expanded across seven major metro areas, including unsupervised rides in parts of Florida and a larger operating zone in Austin.

The results follow a strong delivery quarter, with Tesla reporting 480,126 vehicles delivered, up 25% year over year. Yahoo cited analysts who pointed to international demand and the ramp of the new Model Y as supports, while concerns remain over tariffs, expiring EV tax credits, capital spending and the timing of returns from Tesla’s AI-related investments.