Elon Musk's Tesla on Monday won its bid to revive a London lawsuit brought against U.S. technology firm InterDigital and a patent licensing platform, seeking a patent licence ahead of the automaker's launch of 5G vehicles in Britain.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) investors got a brutal reminder last week that ambitious targets can curdle into cautionary tales.
Tesla delivered record Q2 revenues and vehicle deliveries, but earnings remain under pressure due to surging operating expenses and capital expenditures. TSLA's growth thesis now hinges on monetizing FSD, robotaxi, and Optimus, but these ventures are early-stage and currently dilute earnings. Despite robust cash reserves, negative free cash flow and rising CapEx make TSLA's valuation highly dependent on future success in software and robotics.
Tesla stock fell on high capex, toned down robotaxi expectations, and missed EPS. The stock still remains expensive and has lost one of its biggest profit drivers.
I previously called the SpaceX optionality, and that call was dead wrong. The business underneath it got worse, so I'm downgrading to a sell. Texas registrations quadrupled in six weeks. Cars actually driving unsupervised: still about twenty. Registered isn't driving, and I need unsupervised autonomous driving. Strip out the SpaceX mark and the tax benefit, and roughly $77 million of profit is left on $28.2 billion of revenue. A 1.4% operating margin is the real quarter.
Tesla faces significant program delays in robotaxi and humanoid robots, undermining its first-mover advantage and premium valuation. Q2 '26 results showed a big EPS miss, heavy capex of $5.8B, and negative free cash flow, despite a revenue beat. TSLA continues aggressive spending on unproven products, with capex plans exceeding $25B and no near-term revenue visibility from major robotaxi and robots catalysts.
Shares in Tesla and SpaceX declined this week with Elon Musk's automaker suffering its worst slump since 2022. SpaceX dropped about 7% for the week ahead of a planned test flight of its massive Starship V3 rocket on Friday.
Tesla (TSLA) was the worst performing stock in the S&P 500 (SPX) this week. @CharlesSchwab's Rachel Dashiell looks at the charts and the options activity as the company trades near a 52-week low.
Tesla and SpaceX stock, as investors know, have gotten hammered this week, and the drops have cost Elon Musk a boatload of money.
Shares of Tesla (NASDAQ:TSLA | TSLA Price Prediction) are trading at $308.05 in Friday afternoon action, down 4% on the day and 18% over the past month.
Tesla briefly lost its $1 trillion market capitalization on Friday as shares extended losses following a disappointing second-quarter earnings report, underscoring investor concerns over the electric vehicle maker's profitability and the growing scrutiny surrounding CEO Elon Musk's long-term vision. Tesla stock fell as much as 3.65% during Friday's session to an intraday low of $308, reducing the company's market value to approximately $996.1 billion.
The bearish Tesla set-up we flagged ahead of Wednesday's report has delivered most of what it can.