Tesla invested $5.8 billion in artificial intelligence, self-driving technology, and manufacturing expansion, marking its first cash burn in two years|Mariordo|CC BY-SA 4.0
Tesla stock slipped Thursday morning after the company delivered mixed Q2 results, missing some Wall Street expectations despite reporting better-than-expected cash flow.
Investors are seeking further clarity on Tesla’s physical AI strategy, with related spending weighing on the company’s quarterly results.
Tesla reported negative free cash flow of $1.09 billion after investing $5.8 billion in artificial intelligence, self-driving technology, and manufacturing expansion, marking its first cash burn in two years.
The company’s second-quarter revenue reached $28.24 billion, beating Bloomberg’s $26.32 billion forecast and increasing 26% year over year.
CEO Elon Musk said the EV maker will continue investing in long-term projects, including the Optimus humanoid robot, Cybercab and its robotaxi fleet, as Tesla shifts its focus beyond electric vehicles toward AI and autonomous driving.
Investors responded cautiously to the results, sending Tesla shares down about 5% in pre-market trading over concerns about near-term profitability.