Shares of Elon Musk’s embattled carmaker Tesla slid over 13 percent Thursday morning after posting dismal second quarter results the night before.
The stock is hovering at around $324 at the time of writing, down over 15 percent over the last five days and about 28 percent year to date.
The company missed Wall Street expectations, despite its core automotive segment generating just over $20 billion in revenue, up 23 percent from a year ago. However, the company’s gross profits dropped as operating expenses climbed far quicker than revenue, in large part thanks to AI-related capital expenses and other research and development — an intimately familiar refrain for the tech world in 2026.
In other words, investors are growing increasingly wary of Musk’s reinvention of his car business. The almost-trillionaire is trying to shift the company’s focus from selling cars to robotaxis, a humanoid robot called Optimus, and AI — a series of major undertakings that’re clearly weighing it down financially after multiple quarters of major losses.
