Tesla’s earnings report disappoints, with #TSLA plunging more than 5%, and #TSLA ’s holdings remaining unchanged!

Tesla released its Q2 earnings: revenue of $28.24 billion, exceeding market expectations of $25.71 billion, up 26% year over year.

Adjusted EPS of 33 cents, far below the expected 51 cents; net profit of $1.11 billion, down 5% year over year.

Gross margin fell to 16.8%, below last year’s 17.2% and below the market’s 19.4% expectation.

Operating expenses surged 47% year over year to $4.35 billion. Operating margin dropped sharply from 4.1% to 1.4%, mainly dragged by AI and R&D spending.

Free cash flow turned negative to -$1.1 billion, versus positive $146 million in the same period last year. Capital expenditures jumped 142% year over year to $5.79 billion.

The company said infrastructure investments such as capacity expansion, AI compute power, battery materials, and semiconductor manufacturing are underway.

Automotive revenue was $20.52 billion, up 23% year over year. Energy revenue was $3.14 billion, up 13%. Service and other revenue was $4.58 billion, up 50%.

FSD subscription users reached 1.48 million, up 56% quarter over quarter. Tesla’s stock price is down about 17% year-to-date.

Overall, even though revenue beat market expectations, EPS missed, and free cash flow swung from last year’s positive $146 million to negative $1.1 billion.

After the earnings report, #BTC ’s price dropped more than 5%.

Among the disclosed details on #BTC , some holdings were reported to be unchanged.