Tesla Stock Plunges 13.5% After Q2 Earnings Miss on July 23

Tesla shares crashed 13.5% on July 23, marking one of the worst trading days in company history, after the automaker reported second-quarter earnings of 31 cents per share, far below the 51 cents Wall Street expected. Despite posting record revenue of $28.2 billion, Tesla’s net income fell 17% to $1.15 billion as the company prioritized vehicle volume over profitability. The selloff reflects investor anxiety over heavy capital spending, slowing Robotaxi progress, and uncertainty around the Optimus humanoid robot timeline.

Why Tesla’s earnings disappointed investors

Tesla reported Q2 revenue of $28.2 billion, topping analyst estimates of $27.6 billion. However, earnings per share came in at 31 cents versus the 55 cents analysts expected, a significant miss. The company delivered 480,126 vehicles, a 25% increase year over year, but auto gross profit climbed just 1% despite the surge in deliveries. Net income fell 17% to $1.15 billion from $1.27 billion expected.

Capital spending and margin pressure weigh on outlook

Tesla raised its 2026 capital expenditure guidance above $25 billion, signaling aggressive investment in AI, manufacturing, and autonomous technology. CFO Vaibhav Raneja warned of negative free cash flow impacts for the rest of the year. The company sacrificed margins to clear inventory and boost sales, a strategy that alarmed investors already concerned about profitability. Tesla’s stock fell about 13.5% as the market digested these headwinds.

Robotaxi delays and Optimus uncertainty fuel skepticism

On the earnings call, Elon Musk faced investor questions about the timeline for Robotaxi and Optimus. Robotaxis remain available only on a limited basis in the US, and Optimus is not yet available to consumers. Musk reiterated that Optimus would be Tesla’s biggest product ever but cautioned of numerous hurdles ahead. Investors expressed frustration over the slow rollout, with some questioning why Tesla has repeatedly missed its own targets for these products.

Meyka data signals deeper weakness ahead

Meyka rates TSLA a C+ with a Sell recommendation, citing weak DCF and PE valuations. The stock trades at a PE ratio of 183.68, far above historical norms, while the RSI sits at 28.46, signaling oversold conditions. Meyka’s 12-month price forecast stands at $413.90, implying 29% upside from current levels, yet analyst consensus remains mixed with 7 Buy, 10 Hold, and 3 Sell ratings. The technical picture shows MACD in negative territory and Williams %R at -99.38, reflecting capitulation selling.

Final Thoughts

Tesla’s 13.5% drop reflects a collision of weak earnings, margin pressure, and unmet promises on autonomous vehicles. With Meyka grading the stock a Sell and the RSI deeply oversold, the data suggests further volatility ahead before any recovery takes hold.

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