Tesla Q2 Earnings Miss: EPS at $0.33 Falls 35% Below Estimates; Operating Profit Down 57%

According to Tesla's quarterly earnings released on July 22, the company reported Q2 revenue of $28.236 billion, up 26% year-over-year, but net profit declined 5% to $1.114 billion. Adjusted net income fell 17% to $1.153 billion.

Key metrics underperformed expectations: Q2 EPS came in at $0.33, missing analyst forecasts by over 35%, while gross margin contracted to 16.8% versus expected 19.4%. Operating profit plummeted 57% year-over-year to just $398 million, representing less than 30% of market expectations. Tesla noted it is in the largest investment cycle in its history, with plans to increase spending on AI, robotics, and infrastructure to support future profitability growth.