$TSLA Q2 numbers: record $28B revenue (+26% YoY, best growth since mid-2023), but the story under the hood isn't pretty.
Net income down 5% to $1.1B. Operating margin collapsed from 4.1% to 1.4%. Free cash flow? Negative $1.1B, driven by capex that more than doubled YoY.
Revenue growth looks great in a headline. Margins and cash flow tell you what it actually costs to get there. This is the trade-off when you're spending aggressively to scale — question is whether the payoff justifies the burn.
Markets love a growth story until the math stops working. Keep an eye on whether margins stabilize or keep sliding.
Net income down 5% to $1.1B. Operating margin collapsed from 4.1% to 1.4%. Free cash flow? Negative $1.1B, driven by capex that more than doubled YoY.
Revenue growth looks great in a headline. Margins and cash flow tell you what it actually costs to get there. This is the trade-off when you're spending aggressively to scale — question is whether the payoff justifies the burn.
Markets love a growth story until the math stops working. Keep an eye on whether margins stabilize or keep sliding.