Tesla reported second-quarter revenue of $28.24 billion, exceeding analyst expectations. Car sales rose 23% during the period. Adjusted earnings per share reached 33 cents, missing the 51-cent estimate. Automotive gross margins fell to 16.3% due to price cuts and incentives. Tesla stock dropped over 6% in pre-market trading following the report.
Operating expenses surged 47% to $4.35 billion. Capital expenditures more than doubled to $5.79 billion. The company increased investment in artificial intelligence, Robotaxis, and the Optimus humanoid robot.
Heavy spending resulted in a negative free cash flow of $1.1 billion. This investment surge pressured near-term profitability to fund future growth projects.