Tesla's Q2 profits fall short of Wall Street expectations, with rising costs dragging down performance
Tesla's adjusted earnings per share for Q2 were $0.33, lower than Wall Street's expectation of $0.51, with free cash flow at negative $1.09 billion. Dragged down by high investments in robotics and autonomous driving, the performance fell short of expectations, and the stock price dropped 2.8% in after-hours trading
Tesla's second-quarter performance fell short of Wall Street expectations, impacting the electric vehicle manufacturer that is focused on building new businesses around robotics, autonomous driving, and artificial intelligence.
Tesla stated in a release on Wednesday that its adjusted earnings per share were 33 cents. This is below the average analyst expectation of 51 cents. The company also reported a free cash flow of negative $1.09 billion.
Tesla CEO Elon Musk had previously warned that total spending for the year would exceed $25 billion. The company is planning to fully ramp up production of cars, batteries, and robots at six factories to realize his vision for the future. The impact of these investments is now gradually reflecting in the company's financial performance, leading investors to seek more details.
As of 4:16 PM New York time, Tesla's stock price fell 2.8% in after-hours trading. As of Wednesday's close, the stock has dropped 17% year-to-date
