Tesla stock slides after profit miss; full-year capex spend of $25 billion confirmed - Yahoo Finance
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- Tesla stock declined after the company reported a quarterly profit miss, with CNBC noting free cash flow turned negative and margins compressed
- Tesla confirmed full-year capital expenditure of $25 billion, with multiple outlets flagging spending jumping to meet AI goals even as car sales rebounded
Why it matters: Tesla shareholders now confront a quarter where car sales rebounded yet profitability deteriorated — free cash flow flipped negative and margins compressed — while management commits $25 billion in capex to AI infrastructure. The market is repricing the tension between near-term margin erosion and aggressive AI-related capital deployment.
