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Tesla stock down 34% from peak after Q2 results and price cuts
Tesla reported $28.24 billion in Q2 sales, up 26%, but EPS of $0.33 missed expectations and margins remained a concern despite higher capex.
Tesla shares have fallen about 34% from their peak, with the stock trading near its 52-week lows after a Q2 earnings release that highlighted uneven performance. Yahoo Finance pointed to a recent surge in Tesla's prior cycle, noting the stock was in a similar position a year ago before gaining roughly 40% to 45% by year-end, assuming market conditions cooperate.
In Q2, Tesla beat top line expectations with $28.24 billion in sales, up 26% year over year, but earnings did not meet forecasts. Yahoo Finance said Tesla’s EPS came in at $0.33, below the $0.49 expectation cited in the piece, and suggested the miss aligned with the impact of Tesla’s aggressive vehicle price cuts and low-interest financing promotions.
The report also said capex rose as Tesla increased spending tied to AI compute infrastructure and robotics research and manufacturing. Despite the higher spending and sales growth, the article said investors focused on low margins, arguing that even excluding AI costs, profitability did not look consistent with healthy growth.
Looking ahead, Yahoo Finance laid out scenarios that could support the shares, including the idea of a potential merger with SpaceX and a longer-term robotics breakthrough from Optimus. The article cautioned that a SpaceX-Tesla combination is speculative and that Tesla is not SpaceX in size or fundamentals, even as both companies are described as major partners.