Tesla Profit Fall
Tesla's revenue rose, but profits dipped as Musk boosted AI and robotics spending.
Summary
Tesla said Wednesday that second-quarter net income fell to $1.11 billion, or 32 cents a share, from $1.17 billion, or 33 cents, a year earlier, as higher research and AI spending cut into profit from increased vehicle sales. Adjusted earnings were 33 cents a share, below the 51 cents analysts expected, while revenue of $28.24 billion exceeded the $25.71 billion estimate. Free cash flow turned negative for the first time in more than two years. Tesla also pushed planned volume production of the Cybercab, Semi and Megapack 3 beyond 2026.
The Coverage
Weak Profit Recovery
Tesla’s revenue and delivery gains are not translating into strong profits. Costly AI and robotics ambitions are adding pressure while the core EV business, brand, and stock remain under strain.
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