US Stock Market Move | Tesla, Inc. (TSLA.US) fell more than 9% as Q2 net profit fell short of expectations and gross profit margin further declined.

On Thursday, Tesla, Inc. (TSLA.US) fell more than 9%, closing at $337.38. The financial report showed that Tesla, Inc. achieved revenue of $28.24 billion in the second quarter, exceeding market expectations, with a year-on-year growth of 26%, the first time in three years that revenue growth has exceeded 20%. However, operating profit in the second quarter was only $398 million, much lower than the market's expected $1.39 billion; adjusted earnings per share was $0.33, an 18% year-on-year decrease, also significantly below expectations; gross margin was 16.8%, lower than analysts' expected 19.4%, compared to the overall gross margin of 21.1% in the first quarter. It is worth noting that Tesla, Inc.'s free cash flow in the second quarter was -$1.09 billion, the first negative number reported in a single quarter since the first quarter of 2024. Tesla, Inc. executives stated that the negative free cash flow was due to capital expenditures more than doubling in the second quarter, and they expect capital expenditures to continue to increase over the next two to three years, reiterating that this year's capital expenditures will exceed $25 billion. In the financial report announcement, Tesla, Inc. mentioned that the company is currently in the largest and most exciting investment stage, and will need to make great efforts in the future to leverage AI technology to transform the transportation, energy, and productivity fields. The expansion of the business will exhibit non-linear characteristics, and the company remains focused on creating long-term value. These remarks suggest that the pace of large-scale investments will not slow down, and profit pressures will continue to grow.