Latest Sectors News
Tesla's earnings report lands in the midst of a slide in the company's stock price even as its core auto business is rebounding. View More
In this articleTSLAFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO1:2701:27Tesla shares slide on mixed Q2 resultsClosing Bell: Overtime Tesla reported weaker-than-expected earnings for the second quarter even as revenue topped estimates. The stock slid about 4% in extended trading on Wednesday.Here's how the company did compared to Wall Street expectations, according to estimates from analysts polled by LSEGEarnings per share: 33 cents adjusted vs. 51 cents expectedRevenue: $28.24 billion vs. $25.71 billion expectedTesla's earnings report lands in the midst of a steep decline in its stock price, which is down about 11% this month and 17% for the year as of Wednesday's close. That slide has coincided with a drop in SpaceX, Elon Musk's other trillion-dollar company, which held a record market debut in June and has lost more than 40% of its value since its peak close.Revenue at Tesla jumped jumped 26% in the period from $22.5 billion a year earlier, the company said in a statement. Net income fell 5% to $1.11 billion, or 32 cents a share, from $1.17 billion, or 33 cents per share, a year earlier. Tesla's core automotive segment generated $20.52 billion in revenue, up 23% from a year ago. Revenue in the energy business, which consists of solar and battery energy storage systems, increased 13% to $3.14 billion. In its services and other business, which includes fees for repairing vehicles out of warranty, revenue jumped 50% to $4.58 billion. Despite better-than-expected revenue in its auto business, the company's gross margin dropped and missed estimates as average selling price per vehicle fell and regulatory credit revenue declined. Gross margin, or the profit left after accounting for the cost of goods sold, slid to 16.8% from 17.2% a year earlier. Analysts expected 19.4%, according to StreetAccount. During the quarter, Tesla sold lower-cost version of its popular Model 3 and Y vehicles after retiring its more expensive, flagship Model S and X vehicles. Tesla Model 3 electric vehicles (EV) on a vehicle transport truck at the company's store in Colma, California, US, on Friday, Jan. 23, 2026.David Paul Morris | Bloomberg | Getty Images Operating expenses climbed much faster than revenue, as the company poured money into artificial intelligence and other research and development projects. The 47% increase in operating expenses brought the total to $4.35 billion in the second quarter. Tesla's operating margin plunged to 1.4% from 4.1% a year ago. Musk has shifted the focus of the company away from vehicle sales and toward its driverless Robotaxi service, ramping production of the company's driverless Cybercab, and remaking older factory lines in Fremont, California, to start manufacturing Optimus humanoid robots. He's promised shareholders and fans an AI-powered robot that will be able to step in as a babysitter, factory worker or world-class surgeon. Skyrocketing costs Free cash flow at Tesla turned negative in the quarter. The deficit of $1.1 billion comes after the company generated $146 million in free cash flow a year ago and $1.44 billion in the first quarter of 2026. Tesla said in its shareholder deck that it "will manage the business such that we ensure a strong balance sheet, maintaining sufficient liquidity to fund our product roadmap, long-term capacity expansion plans â including further vertical integration â and other expenses."Capital expenditures, meanwhile, soared 142% to $5.79 billion from $2.39 billion in the same quarter last year. CFO Vaibhav Taneja told shareholders during the company's last earnings call in April that capex would top $25 billion this year. "Capacity build out and ramp related to our multi-year infrastructure initiatives, including AI compute, solar, battery material and semiconductor manufacturing are underway," the company said in the earnings deck. Tesla is trying to recover from consecutive years of declining deliveries, largely due to competition from Chinese automakers, including BYD, Nio and Xiaomi, that are offering affordable but high-tech EVs in markets beyond the U.S. Some car buyers have boycotted Tesla in response to Musk's incendiary political rhetoric and work with the Trump administration.Rising gas prices resulting from the U.S. war in Iran boosted Tesla sales in the first half of the year, with European car buyers purchasing more EVs.Taneja told investors on Wednesday that operating expenditures will "grow in 2026 and beyond." He also said, "commodity price increases and interest rate changes" will all continue to add to Tesla's costs. watch nowVIDEO4:0204:02Tesla stock likely sliding on EPS miss, says Morningstar's Seth GoldsteinClosing Bell: Overtime Musk said on the earnings call that Tesla would soon disclose more details about the chip plant and had already ordered equipment for a "development fab," but declined to discuss other details for the "high-risk, high-payoff bets" the company is making around AI chips. The company said in its earnings presentation that it's "installing the first-generation lines for Optimus," and will "start production soon." Tesla also said its initial Optimus robots will be used for "training data collection and further functionality development," not deployed to customers."This is going to be the hardest product to scale manufacturing that we've ever made at Tesla, because everything on the robot is new," Musk said on the call. He added that there is "no existing supply chain" for it.Tesla said "active FSD subscriptions" rose 56% in the quarter, and the company now has 1.48 million subscribers total to that product. The full name for FSD in the U.S. is Full Self-Driving (Supervised), and in every market, it requires a human driver ready to steer or brake at all times. Tesla is lagging far behind driverless ride-hailing companies including Alphabet's Waymo, and Baidu's Apollo Go, but the company is now "ramping unsupervised" Robotaxi rides in several U.S. markets.The company has started production of a two-seater driverless vehicle called Cybercab, but it's not clear when it will be deemed safe and available for use by individuals. "We need to be cautious about causing any accidents or causing any harm to anyone," Musk said. "If we injure even one person, it will be worldwide headline news, and regulators will immediately clamp down on our activities."Ashok Elluswamy, Tesla's vice president of Autopilot, added during the call that Tesla's Robotaxi fleet is now running with the "v. 15" build of its FSD software. The forthcoming Cybercab will use the same version of the FSD software used in its Robotaxi fleet, he said.Musk was asked on the call if Tesla and SpaceX would ever merge. "There more and more overlap especially with Terafab. That's really going to be a gigantic project," he said. "But obviously, we can't talk about combining companies and that kind of thing on an earnings call." Musk and other Tesla execs noted that Grok, an AI chatbot available in Tesla vehicles, is made by SpaceXAI (formerly known as xAI). Cybercab will rely on SpaceX's Starlink for connectivity, Musk noted. And SpaceXAI is also developing an AI model intended to serve as a "manager" of Optimus.WATCH: Chinese EVs push into UK market watch nowVIDEO6:0606:06Chinese EVs push into the UK marketAutos Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The unusual planetary system, 71 light-years from Earth, is unlike anything previously observed in the Milky Way View More
The project was awarded under SECI's tariff-based global competitive bidding for the supply of 1,500 MW / 12,000 MWh of power from pumped hydro storage projects being set up in the country View More
Solar thermal lowers not only carbon emissions but also costs, compared with heat from fossil fuel View More
The Ministry said the limited ALMM relief will protect manufacturers’ investments, support domestic solar production, and ensure a smoother transition to sourcing solar PV cells from ALMM-listed manufacturers View More
Reliance used its integrated energy business to weather supply shocks while advancing solar and battery manufacturing View More
NLC India Renewables has engaged four investment banks to facilitate its much-anticipated initial public offering. This IPO is designed to enhance the company's capital structure, fueling its ambitious growth objectives. The firm aims to broaden its renewable energy initiatives and align with national energy goals, currently managing 1,785 MW in solar, wind, and battery storage systems. Plans for aggressive expansion are in motion across various states in India. View More
New Delhi, State-owned NLC India's subsidiary NLC India Renewables Ltd (NIRL) has appointed four leading investment banks, including SBI Capital Markets and HDFC Bank , as book running lead managers for its proposed initial public offering (IPO). The other two book running lead managers (BRLMs) which have been selected following a board-approved, structured and competitive process are -- IIFL Capital Services , IDBI Capital Markets & Securities. The proposed IPO is expected to strengthen NIRL's capital base and support its long-term growth strategy in the renewable energy sector and to contribute to the country's target of achieving 500 GW of non-fossil fuel-based energy capacity by 2030, a company statement said on Friday. Also, it is intended to facilitate the listing of the equity shares of NIRL on the recognised stock exchanges in India, subject to receipt of applicable statutory and regulatory approvals, prevailing market conditions and other customary considerations. The appointment is subject to receipt of applicable statutory and regulatory approvals and prevailing market conditions, NIRL said in a statement. Live Events The BRLMs will advise and assist the company in the preparation and management of the IPO, including undertaking due diligence, preparation of offer documents, coordination with regulatory authorities and intermediaries, marketing of the issue, and other activities in accordance with applicable laws and regulations. NIRL was incorporated on June 14, 2023, not only to spearhead the existing 1,785MW renewable business that span solar, wind, battery energy storage system (BESS), roof top solar but also for future renewable energy business of the NLCIL Group. The company is engaged in the development, generation, ownership and operation of renewable energy projects, with a focus on supporting India's clean energy transition and the nation's renewable energy capacity expansion objectives. NIRL has emerged as a key driver of the nation's renewable energy transition since its inception. The company's current portfolio comprises an aggregate installed capacity of 1,785 MW across solar, wind, battery energy storage systems and rooftop solar, with operational assets in Tamil Nadu, Rajasthan, and Andaman. The company is expanding aggressively across Tamil Nadu, Rajasthan, Gujarat, Assam, Maharashtra, Odisha, Uttar Pradesh, and Punjab. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;width: 100%;box-sizing: border-box} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)
Hyderabad-based Bikewo will deploy the vehicles across its rider network to evaluate range, battery efficiency, payload capacity and ride quality View More
India is adding green capacity at a rapid clip, but the power system is not keeping pace with the renewable build-out. View More