Tesla (NASDAQ:TSLA) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Tesla (NASDAQ:TSLA) posted its earnings results on Wednesday. The electric vehicle producer reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.17), FiscalAI reports. Tesla had a net margin of 3.67% and a return on equity of 3.88%. The firm had revenue of $28.24 billion during the quarter, compared to analyst estimates of $26.42 billion. During the same quarter in the prior year, the firm earned $0.33 earnings per share. The business’s revenue for the quarter was up 25.5% on a year-over-year basis.

Here are the key takeaways from Tesla’s conference call:

• Tesla reported record Q2 deliveries and said demand improved globally, with the largest order backlog since 2023 and strong Model Y momentum across multiple markets.
• Management said FSD is becoming a major demand driver, citing nearly 1.5 million paid customers globally and strong attach rates, especially in North America.
• Automotive and energy margins declined in the quarter, with Tesla pointing to the absence of prior-quarter benefits, higher interest-rate subvention costs, commodity inflation, tariffs, and warranty true-ups.
• Tesla said Robotaxi is scaling with an “impeccable” safety record, claiming 380,000+ unsupervised miles across six cities in two states with zero notable incidents.
• The company reiterated a heavy investment cycle, expecting CapEx above $25 billion this year and higher spending over the next few years for Optimus, robotaxi, chips, solar manufacturing, and AI infrastructure.

Tesla Stock Down 14.5%

TSLA opened at $319.69 on Friday. Tesla has a twelve month low of $297.82 and a twelve month high of $498.83. The company has a quick ratio of 1.62, a current ratio of 2.04 and a debt-to-equity ratio of 0.09. The company has a 50-day moving average price of $402.92 and a 200 day moving average price of $403.16. The company has a market cap of $1.20 trillion, a PE ratio of 296.01, a price-to-earnings-growth ratio of 12.55 and a beta of 1.80.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on TSLA shares. Wedbush reaffirmed an “outperform” rating and issued a $600.00 price objective on shares of Tesla in a report on Tuesday, April 21st. Weiss Ratings reissued a “hold (c-)” rating on shares of Tesla in a research note on Tuesday. BNP Paribas Exane cut Tesla from a “hold” rating to an “underperform” rating in a research report on Friday, June 5th. TD Cowen reaffirmed a “buy” rating and issued a $460.00 price target (down from $490.00) on shares of Tesla in a report on Thursday. Finally, Erste Group Bank upgraded Tesla from a “sell” rating to a “hold” rating in a research report on Friday, June 5th. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $406.42.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record quarterly revenue of $28.24 billion, up about 26% year over year, helped by strong deliveries and continued growth in services and energy. Tesla Q2 2026 earnings: revenue beats, profit misses estimates
• Positive Sentiment: The company said it is expanding robotaxi and Optimus efforts, which bulls see as long-term growth drivers if Tesla can execute. We have more numbers on Tesla’s Robotaxi progress. Here are the 7 that matter most.
• Neutral Sentiment: The U.S. auto safety regulator denied a petition to investigate Tesla’s door-release design, removing one overhang for now, but the broader safety debate around Tesla’s design choices remains. US auto safety regulator denies petition seeking Tesla door-release defect probe
• Negative Sentiment: Profit missed expectations: Tesla posted adjusted EPS of $0.33 versus estimates near $0.50-$0.51, reinforcing concerns that pricing pressure and rising costs are squeezing margins. Elon Musk’s Tesla posts cash burn as capex surges on AI, robotaxi push
• Negative Sentiment: Tesla also reported negative free cash flow of $1.1 billion as capital spending more than doubled, with management signaling about $25 billion in full-year capex tied to AI, autonomy, batteries, and manufacturing. Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’
• Negative Sentiment: Investors are increasingly worried that Tesla’s AI and robotaxi bets are years away from meaningful revenue, while current auto margins weaken and competition in autonomous driving looks stronger than expected. Tesla Trailing Alphabet’s Waymo on Robotaxis Without Safety Monitors

Insider Activity

In other news, CFO Vaibhav Taneja sold 2,606 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $402.20, for a total value of $1,048,133.20. Following the transaction, the chief financial officer owned 22,039 shares in the company, valued at $8,864,085.80. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kathleen Wilson-Thompson sold 26,409 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the sale, the director owned 48,399 shares of the company’s stock, valued at $18,300,145.89. The trade was a 35.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 32,015 shares of company stock worth $12,383,640. 19.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Tesla

Hedge funds and other institutional investors have recently modified their holdings of the business. Chapman Financial Group LLC acquired a new stake in Tesla in the 2nd quarter valued at about $26,000. Turning Point Benefit Group Inc. acquired a new stake in shares of Tesla in the third quarter valued at approximately $30,000. Texas Capital Bancshares Inc TX purchased a new position in Tesla during the third quarter worth approximately $31,000. Galaxy Group Investments LLC purchased a new position in Tesla during the fourth quarter worth approximately $51,000. Finally, Litman Gregory Wealth Management LLC acquired a new position in Tesla during the fourth quarter worth $56,000. 66.20% of the stock is owned by hedge funds and other institutional investors.

Tesla Company Profile

Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.

Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.