Tesla stock drops 13.5% in one of worst single-day losses
9 reported
Tesla’s stock fell about 13.5% on Thursday in one of the largest single-day market losses in the company’s history, according to a report from The Guardian. The automaker has lost about 27% of its market value this year as high capital expenditures and weaker-than-expected profits concern investors. The decline came after Tesla released its second-quarter earnings, which showed earnings of 31 cents per share versus the 51 cents per share analysts expected. Although the company beat revenue predictions, a sharp selloff followed. On the earnings call, CEO Elon Musk faced questions about the timeline for Tesla’s Robotaxi service and Optimus humanoid robot, both of which have seen slow rollouts. Tesla spent $5.8bn in the second quarter, resulting in negative free cashflow of $1.1bn for the first time in over two years. The broader US stock market also fell, with the Nasdaq down more than 2% and the S&P 500 and Dow down over 1%.
What’s reported
Tesla’s stock fell about 13.5% on Thursday.
The company has lost about 27% of its market value this year.
Second-quarter earnings were 31 cents per share, below the 51 cents per share analysts expected.
Tesla beat revenue predictions but saw a sharp selloff.
Musk faced questions on the earnings call about the Robotaxi and Optimus robot timelines.
Tesla spent $5.8bn in Q2, leading to negative free cashflow of $1.1bn for the first time in over two years.
US stocks fell: Nasdaq down more than 2%, S&P 500 and Dow down more than 1%.
Alphabet shares fell 6.5% after reporting higher spending and its first cash burn.
The CBOE Volatility Index rose to 19.64.
Key figures
Elon Musk, CEO of Tesla
Alphabet (Google’s parent company)
Sources: The Guardian
