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Tesla (TSLA) crashes 12%, sheds $140B as Elon Musk's 'just trust me' doesn't hold anymore
Tesla has experienced a significant decline in stock price, dropping over 12% following its Q2 2026 earnings report. While the company posted record revenue of $28.24 billion, its profits fell sharply due to various factors including decreased regulatory credit revenues and a 57% drop in operating income. Investors are losing faith in Elon Musk's long-standing promises regarding self-driving technology and robotaxi initiatives, questioning the credibility of future growth prospects.
MonitorConfidence: HighImmediate horizonReputational risk: High
Published 25 Jul 2026, 07:25 UTC4 min read
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Summary
TL;DR
- Tesla's stock fell 12%, losing over $140 billion in market value
- Q2 2026 earnings missed profit expectations, leading to negative cash flow
- Operating income dropped 57% while revenue grew by 26%
- Musk's repeated promises on robotaxi technology failed to reassure investors
- Regulatory credits revenue decreased by 67%, impacting overall profits
- Tesla's delivery growth reliant on incentives, affecting automotive margins
Interesting facts
- Tesla's operating margin fell to 1.4%, compared to 4.1% a year prior
- For the first time in years, Tesla reported negative free cash flow