Tesla stock plunged 14.38% after reporting Q2 earnings that missed Wall Street expectations. While revenue grew 26% to $28.2 billion, adjusted net income fell 17% to $1.2 billion ($0.33 per share vs. expected $0.54). The company's operating margin collapsed to 1.4% from 4.1% due to a 47% surge in operating expenses, and free cash flow turned negative. Investors are frustrated with Elon Musk's massive capital expenditure plans exceeding $25 billion in 2026 while key projects like Robotaxi and Optimus robots miss development timelines.
Axe note: Tesla’s surprise earnings miss and cash flow squeeze dampen appetite for high-growth tech, pressuring USD/ZAR.