Tesla Stock Erases Year's Gains After Q2 Miss
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- Tesla stock fell 1.2% to $309.22 on Monday, capping an 18% weekly drop and pushing shares 30% below their start-of-year level and 5% below year-ago levels — its first time in the red year-over-year in a while.
- Tesla reported Q2 operating profit of about $400 million, missing Wall Street's expectation of roughly $1.7 billion.
- Tesla provided no material new updates on its AI-trained robo-taxi or robot businesses, the growth drivers investors have been waiting for amid stagnant EV sales.
- Despite a broad market rally — the S&P 500 rose 0.02% and the Dow climbed 0.51% as Iran tensions cooled and crude oil dropped nearly 5% to about $82/barrel — Tesla continued its slide, with the article noting 'investors would have taken it if it led to a daily rise.'
- Deutsche Bank analyst Edison Yu cut his price target on Tesla to $420 from $465 following earnings but maintained a Buy rating.
- Tesla recently stopped producing the Model S and Model X, converting that manufacturing capacity for robot production in Fremont, California.
Why it matters: Tesla shares are down roughly 38% from December 2025's ~$500 peak, and even bullish Deutsche Bank analyst Edison Yu trimmed his target to $420 from $465 after the earnings miss. Tesla's decision to repurpose Model S/X factory capacity for robots signals the company's growth story is moving past EVs — yet investors got no fresh AI roadmap to anchor the next leg up.
