Tesla shares fell more than 12 percent after its 2026 second-quarter profit and free cash flow missed market expectations, wiping out more than $140 billion in market value. Revenue rose 26 percent and deliveries hit a record, but operating profit and margins declined and adjusted EPS fell short of Wall Street estimates. Free cash flow turned negative as capital spending jumped. Investors were not swayed by Elon Musk’s comments on Optimus or robotaxi metrics.

Tesla has stressed expanding its robotaxi service, but a quarterly review of its own results materials shows growth in paid robotaxi mileage stalled in the second quarter. It reported cumulative paid mileage of more than 2.4 million miles, yet quarterly gains were about 900,000 miles in both the first and second quarters. Tesla expanded service areas to Tampa and Orlando but did not disclose vehicle counts, and its active unsupervised fleet across four cities was put at about 21 vehicles.