Tesla Q2 earnings miss estimates as free cash flow turns negative
Tesla reported second-quarter earnings that fell short of Wall Street estimates on Wednesday, with free cash flow turning negative and profit margins narrowing. The results landed even as the company's core vehicle business showed signs of a rebound. Shares slid in after-hours trading as investors weighed rising costs against improving sales.
Tesla's second-quarter earnings report, released Wednesday, fell short of Wall Street's expectations, with free cash flow turning negative for the period and profit margins continuing to slide.
The disappointing figures come even as the company's core auto business shows tentative signs of recovery, with delivery numbers stabilizing after a rough stretch. Executives pointed to elevated spending on manufacturing capacity and new model development as a drag on near-term profitability.
Shares fell in after-hours trading as investors weighed the cash-flow figures against the improving sales trend. Analysts said the results reinforce concerns that Tesla's margins will remain under pressure until its newer, lower-cost vehicle lines reach full production volume.
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