Tesla reported adjusted earnings of 33 cents per share for the second quarter, significantly below the expected 51 cents. However, the company's revenue of $28.24 billion exceeded the consensus estimate of $25.71 billion.
The automotive segment performed well, generating $20.52 billion in revenue, a 23% increase year-over-year, and Tesla delivered a record 480,126 vehicles, up 25% from the previous year.
Despite these positives, shares fell nearly 10% as analysts from firms like JPMorgan and Mizuho reduced their price targets, citing concerns over high capital expenditures related to AI initiatives such as Cybercab and the humanoid robot Optimus. Year-to-date, Tesla's stock has dropped 25%.
Analysts remain cautiously optimistic about the company's long-term potential, with price targets ranging from $300 to $508, reflecting varying degrees of confidence in Tesla's ability to navigate near-term challenges while capitalizing on future growth opportunities in autonomous vehicles and robotics