Tesla stock price may hit its biggest single-day drop since June 2025
The electric car maker's second-quarter results fell short of expectations, and it also announced that it would significantly increase spending, causing investors to panic. Shares fell 14% on Thursday, likely to be the worst one-day drop since June 2025. The company’s capital expenditures in the second quarter reached US$5.79 billion, a year-on-year surge of 142%, more than doubling in size. Tesla expects total capital investment for the year to exceed $25 billion. Large-scale investment caused free cash flow to turn from positive to negative in this quarter. Although vehicle revenue exceeded market expectations, profitability deteriorated. Affected by the lower average selling price of vehicles and the decline in revenue from high-profit carbon credits, the gross profit margin was lower than analysts’ expectations. The market is once again concerned that Tesla is struggling to balance heavy investment with profit growth.