Tesla reported record second-quarter revenue of $28.2 billion on Wednesday, but the electric-vehicle maker's adjusted earnings and profit margins fell short of analyst expectations, sending shares down nearly 3% in after-hours trading.
Revenue milestone overshadowed
The revenue figure topped the company's previous high, driven by record vehicle deliveries during the quarter. However, the market's focus quickly shifted to the bottom line. Tesla's adjusted earnings per share missed consensus estimates, and its operating margin narrowed compared to the same period last year.
Deliveries hit new high
Tesla delivered more vehicles in the second quarter than in any previous three-month period. The company has been ramping up production at its factories in Texas, Berlin, and Shanghai, and recently began deliveries of the Cybertruck, though volumes remain small.
What investors are watching
The after-hours selloff suggests that Wall Street is more concerned about profitability than top-line growth. Tesla's stock has been volatile this year, with investors weighing the company's long-term potential against near-term margin pressure.
The company did not provide a specific vehicle delivery target for the full year, but reiterated its goal of 1.8 million units. The next major update will come when Tesla reports third-quarter deliveries in early October.
