Tesla Stock Plummets After Mixed Q2 Results and Optimus Warnings

Tesla shares dropped 14% on Thursday after the company reported mixed second-quarter results on Wednesday. While revenue rose 26% year-over-year to $28.24 billion, exceeding expectations, adjusted earnings per share of $0.33 missed the $0.50 estimate. The company also reported a negative free cash flow of $1.1 billion.

During the earnings call, Elon Musk warned that the Optimus humanoid robot will be the hardest product to scale in Tesla's history because nearly every part is new. Musk acknowledged the complexity of designing for dexterity and wear, though he maintained that Optimus will be the first robot capable of generalized tasks, unlike competitors' preprogrammed demonstrations. Production for Optimus remains on track for later this year.

Financially, CFO Vaibhav Taneja confirmed full-year capital expenditures will exceed $25 billion, with Musk describing 2026 as a massive investment year. Operationally, Tesla expanded its Robotaxi service to seven major metro areas, launching unsupervised rides in Miami, Orlando, and Tampa, and increasing operations in Austin. Musk declined to comment on a potential merger between Tesla and SpaceX.