US Stock Alert | Tesla (TSLA.US) Falls Over 9% as Q2 Net Profit Misses Expectations and Gross Margin Further Declines

According to Zhitong Finance APP, on Thursday, Tesla (TSLA.US) dropped more than 9%, closing at $337.38. The financial report shows that in the second quarter, Tesla achieved revenue of $28.24 billion, exceeding market expectations, a year-on-year increase of 26%, marking the first time in three years that its revenue growth rate surpassed 20%. However, the operating profit for the second quarter was only $398 million, far below the market expectation of $1.39 billion; adjusted earnings per share were $0.33, a year-on-year decrease of 18%, also significantly missing expectations; the gross margin was 16.8%, lower than analysts' prediction of 19.4%, and the overall gross margin in the first quarter was 21.1%.

It is noteworthy that Tesla's free cash flow for the second quarter was -$1.09 billion, marking the first negative single-quarter result since the first quarter of 2024. Tesla executives stated that the negative free cash flow was due to capital expenditures more than doubling quarter-on-quarter in Q2; capital expenditures are expected to continue growing in the next two to three years, and they reiterated that capital expenditures this year would exceed $25 billion.

In its financial statement, Tesla mentioned that the company is in its largest and most exciting investment phase yet and will continue to make significant efforts in the future, aiming to use AI technology to revolutionize transportation, energy, and productivity sectors. The expansion of the business scale will exhibit non-linear characteristics, and the company will remain focused on creating long-term value. This statement suggests that the pace of large-scale investments will not slow down, further amplifying pressure on profitability.