Tesla dropped another 4.13% in after-hours trading Wednesday, landing near $358.55, after the company posted second-quarter results that left Wall Street underwhelmed on the profit side. The regular session had already closed in the red at $374.01, down 1.30% from the prior day's $378.93.
Revenue was not the problem. Tesla pulled in $28.24 billion for the quarter, well ahead of the Bloomberg consensus of $26.32 billion and up 26% year-over-year. The energy business contributed meaningfully, with storage deployments hitting 13.5 gigawatt-hours, more than 50% above Q1's 8.8 GWh. Vehicle deliveries came in at 480,126 units, a 25% jump from a year ago and roughly 83,000 above analyst estimates.
Where the numbers broke down
Adjusted earnings per share landed at $0.33, against expectations of $0.50. Adjusted EBITDA reached $3.27 billion, short of the roughly $4 billion Wall Street had penciled in. The gap between a strong top line and a soft bottom line points to the cost of building out Robotaxi infrastructure, AI systems and humanoid robotics simultaneously. Cash burn, at least, came in lighter than feared, which gives the company some breathing room as those capital-heavy projects scale.
Regional sales told a split story. US demand has been squeezed since the federal EV tax credit expired, with Cox Automotive projecting a 20% drop in domestic Tesla sales. Europe moved in the opposite direction: Greater Europe registrations jumped nearly 108% in May, and EU-wide numbers more than doubled. International markets are carrying more of the load than they were a year ago, and that shift matters as domestic headwinds persist.
The stock's reaction suggests investors are less focused on how many cars Tesla ships and more focused on whether the Robotaxi and AI bets will convert into margin recovery anytime soon. At $358 after hours, the shares have given back gains that had taken them close to $380 earlier in Wednesday's session.
This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any asset.
