Tesla Drops 14% After Scrapping 2026 Volume Targets for 4 New Products
Updated
Updated · Barchart · Jul 29
Tesla Drops 14% After Scrapping 2026 Volume Targets for 4 New Products
3 articles · Updated · Barchart · Jul 29
Summary
Tesla removed language pointing to 2026 volume production for Cybercab, Semi, Megapack 3 and Optimus, saying it must first ramp 4680 battery-cell output; the stock fell more than 14% after earnings.
Q2 revenue rose 26% to $28.24 billion and deliveries hit a record 480,126 vehicles, but adjusted EPS of $0.33 missed roughly $0.51 estimates, operating margin shrank to 1.4% and free cash flow turned negative.
Capital spending more than doubled to $5.79 billion, and Tesla said 2026 capex will exceed $25 billion as it pours money into AI, robotics, manufacturing capacity and batteries.
Elon Musk said Optimus may be Tesla's hardest manufacturing challenge, reinforcing investor worries that robotaxi, robotics and energy-growth plans remain intact but are slipping further out on the timeline.
Wall Street turned more cautious after the report, with JPMorgan cutting its target to $445 and Morgan Stanley to $400 even as Tesla still trades at about 235 times forward earnings.