Tesla stock falls 4% after Q2 profit misses expectations

Tesla's stock declined more than 4% in after-hours trading as the electric vehicle manufacturer reported second-quarter results that missed profit expectations, despite exceeding revenue forecasts.

The company announced revenue of $28.24 billion, surpassing the $26.31 billion anticipated by analysts, driven by record Q2 vehicle deliveries. However, adjusted earnings per share came in at 33 cents, falling short of the estimated 50 cents.

In its earnings release, Tesla highlighted a strong quarter across its vehicle, energy, and services businesses, alongside its manufacturing, infrastructure, and AI initiatives. The company indicated it is entering its "largest and most exciting period of investment."

During the subsequent analyst call, Elon Musk addressed several key areas. He tempered expectations for the production ramp-up of Tesla's humanoid robot, Optimus, citing manufacturing challenges. Regarding robotaxis, executives stated that a careful rollout is crucial, noting that Tesla has completed 380,000 miles of unsupervised robotaxi rides without significant incidents.

Musk also touched upon ambitions to power AI data centers with solar energy, predicting increased demand for Tesla's Megapack battery business. Furthermore, Tesla plans to upgrade nearly all camera-equipped vehicles with next-generation AI hardware.