Tesla Burns $1.1B Cash in Q2 as AI, Robotaxi Capex Surges
TSLA sits 22% above its 52-week low of $297.82.
Summary
Tesla posted negative free cash flow of $1.1 billion in Q2—its first cash burn in over two years—driven by heavy spending on AI infrastructure, battery capacity, and robotaxi expansion, with total capital expenditures reaching $5.8 billion. The cash burn was narrower than the $3.3 billion analysts feared, but it underscores the capital intensity of Musk's autonomy and robotics ambitions. Deliveries rebounded to 480,126 vehicles, beating expectations and reversing an inventory build, while energy storage deployments surged to 13.5 GWh. The company also detailed robotaxi service expansion to five cities and FSD Supervised regulatory wins in Europe. With shares already down over 15% this year, the cash burn and elevated capex raise questions about near-term profitability even as the autonomy narrative advances. The next catalyst is a key European vote on FSD approval expected later this year.
At the time of this announcement, TSLA was trading at $362.39 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.4T. The 52-week trading range was $297.82 to $498.83. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.