Tesla shares closed at $313.03 on July 24 after falling 2.08% during the session. The stock also slipped to about $311.40 in after-hours trading. Over one month, Tesla lost around 16.55% as investors reassessed the company’s second-quarter results and spending plans.
The latest decline followed a 14.52% plunge on July 23. Tesla reported record vehicle deliveries and higher revenue, yet weaker margins and negative free cash flow drew more attention. The stock now trades close to the lower end of its recent range, with $300 becoming the nearest major technical level.
Tesla stock traded as high as $322.87 on July 24 before falling to an intraday low near $306.53. Selling pressure stayed firm after the earnings-driven decline. As a result, the shares closed only a few dollars above their first major support zone.
The area between $306.50 and $300 now serves as short-term support. A sustained close below $300 could bring the 52-week low near $297.82 back into focus. On the other hand, buyers need to reclaim the $320 to $323 range to slow the current decline.
Stronger resistance sits between $340 and $342. Tesla traded near that area before the post-earnings gap widened. A recovery toward that range would require stronger demand and improved confidence in the company’s profit outlook.
Tesla delivered a record 480,126 vehicles during the second quarter. The total exceeded the company-compiled estimate of about 406,000 vehicles. Model 3 and Model Y deliveries reached 467,762 units and accounted for most of the quarter’s volume.
Revenue rose 26% from a year earlier to about $28.24 billion. Automotive revenue reached nearly $20.5 billion, while services and other revenue increased 50% to $4.58 billion. These results showed that Tesla continued to expand sales across its main business lines.
Nevertheless, investors focused on profitability. Tesla’s operating margin fell to 1.4% from 4.1% a year earlier. Lower vehicle prices and higher costs supported deliveries but reduced earnings from each sale.
The weaker margin also raised questions about how quickly Tesla can turn rising sales into stronger cash generation. This issue became more important as the company increased spending on artificial intelligence, batteries, robotics and autonomous-driving systems.
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Tesla’s capital expenditure reached about $5.8 billion during the quarter. Free cash flow turned negative by roughly $1.1 billion, marking the company’s first quarterly cash burn in more than two years. Tesla also expects annual capital spending to exceed $25 billion.
The company continues to fund robotaxi development, artificial intelligence infrastructure, next-generation manufacturing and the Optimus robot program. Meanwhile, investors are waiting for clearer revenue growth from these projects as costs rise in the near term.
The concern spread beyond Tesla. Alphabet shares also fell as investors reviewed higher artificial intelligence spending plans. It raised its 2026 capital expenditure guidance to between $195 billion and $205 billion, up from its earlier range.
The NASDAQ moved lower as investors reduced exposure to high-growth technology stocks. Risk-off trading also reached digital assets. Bitcoin fell about 1.8% toward $64,800, while Ether dropped around 3% to nearly $1,870. Concerns over technology spending affected several risk markets during the same trading period.