Tesla Shares Plunge 17.8% After Earnings Miss Turns Free Cash Flow Negative
Updated
Updated · IG International · Jul 27
Tesla Shares Plunge 17.8% After Earnings Miss Turns Free Cash Flow Negative
1 articles · Updated · IG International · Jul 27
Summary
Tesla sank 17.8% last week, the sharpest notable move among major tech names, after its results missed expectations and investors punished another quarter of heavy spending.
Operating margin collapsed and free cash flow turned negative, reinforcing concerns that rising investment is outpacing near-term earnings support.
Investors are also losing patience with limited visibility on when Tesla can scale its robotaxi and Optimus humanoid robot businesses into meaningful growth drivers.
The selloff added to a broader tech retreat: the Nasdaq 100 fell 1.6% for the week and the S&P 500 lost 0.6% as Big Tech earnings failed to reassure markets.