NEW YORK — Tesla (NASDAQ: TSLA) took its hardest hit in more than a year in Thursday’s session, falling about 14% to close near $336 and shedding roughly $140 billion in market value. The slide came after the company’s second-quarter report, released after Tuesday’s close, delivered record revenue but a sharp miss on profit.
For long-term shareholders, the sell-off looked less like a verdict on Tesla’s business and more like a repricing of expectations, one that leaves a fast-growing AI and energy franchise trading at a notable discount to where it stood just days earlier.
The Move
$TSLA opened lower and extended losses through the session, marking its steepest single-day decline since March 2025. The stock had been holding near $391 before earnings, and the roughly 14% drop unwound weeks of pre-report gains. Trading volume was heavy as institutions repositioned around the print and the subsequent earnings call.
The pullback also rippled across Musk-linked names. SpaceX (NASDAQ: SPCX), which went public in June and now includes xAI, had already eased from its post-IPO highs, and sentiment across the complex cooled in tandem. Neuralink and The Boring Company remain private and were unaffected directly.
Why It Happened
The catalyst was the profit line. Tesla posted record revenue of $28.24 billion, up 26% year over year, and a record 480,126 deliveries. But adjusted earnings of $0.33 per share fell short of the roughly $0.53 Wall Street expected. Operating income dropped 57%, regulatory-credit revenue fell to $146 million as that stream dries up, and free cash flow turned negative at about $1.09 billion as capital spending jumped to fund factories and AI compute. The details are laid out in Tesla’s record-revenue Q2 report, which multiple outlets including Electrek covered as the shares slid.
