Tesla earnings disappoint Wall Street as Elon Musk’s AI push, pivot beyond cars hurt profits

Tesla's second quarter earnings missed profit estimates for the first time in over two years. The company reported negative free cash flow as AI and robotics investments accelerated significantly. Higher operating expenses and lower average selling prices also impacted Tesla's profitability. Despite record vehicle deliveries, investors expressed concern over the increased cash burn. Tesla shares experienced a decline following the announcement of these financial results.