Tesla Stock Drops 12% as Q2 Operating Profit Misses Forecast, Gross Margin Falls to 16.8%

According to Odaily and MSX.COM data, Tesla's stock price declined 12% to $329.015 per share in Q2, with market capitalization at $1.24 trillion. Q2 operating profit reached only $398 million, significantly below analyst expectations of $1.39 billion, while gross margin contracted to 16.8% from 21.1% in Q1, missing the forecast of 19.4%.

Tesla reported Q2 free cash flow of negative $1.09 billion, the first quarterly deficit since Q1 2024. The company attributed the negative cash flow to capital expenditures more than doubling quarter-over-quarter, with management reiterating guidance for over $25 billion in total capital spending for the year.