Tesla’s Stock Dropped By About 4%.

US company Tesla posted mixed financial results for the second quarter of 2026, as total revenue beat Wall Street expectations and rose 26 percent to $28.2 billion, but the company’s shares fell about 4 percent in after-hours trading on lower profits.

The main reasons for investors’ dissatisfaction lie in the sharp decline in earnings per share (EPS), which amounted to $0.33 compared to the forecast of $0.51, as well as in weak profit margins, and free cash flow went into the red, amounting to $1.1 billion, reports CNBC.

Tesla’s automotive division generated quarterly revenue of $20.52 billion, and the energy and services segments saw significant growth, but the average selling price of a vehicle was reduced due to the discontinuation of the more expensive Models S and X and a focus on cheaper electric cars.

At the same time, the company’s operating expenses jumped by as much as 47 percent, while total investment investments increased by 142 percent and reached almost 5.8 billion dollars in this quarter.

Drastic cost growth and pressure on profitability are the result of CEO Elon Musk’s decision to increasingly shift the focus of business from classic vehicle production to artificial intelligence, autonomous taxis and robotics, according to experts.

The company is heavily investing in building its own AI chip factory, establishing the first production line for the Optimus humanoid robot, and expanding the Cybercab fleet of autonomous vehicles.

Musk confirmed that Optimus production will initially be solely for data collection and internal development, warning that it is the most complex mass-produced product in the company’s history.

• Also See: This Year, Tesla Hopes To Increase Production At A Major German Factory