TradingKey – Tesla’s profit margin tumbled and its free cash flow turned negative, triggering an investor sell-off that sent its stock down over 6%.

On July 23, Eastern Time, Tesla ( TSLA) shares extended their recent slide, tumbling 6.26% in pre-market trading to trade at $350.70, hitting a new three-month low and testing the technical support line of $340, which is also the lowest point of this year’s decline.

After yesterday’s close, Tesla released its Q2 2026 earnings report, showing revenue surpassing $28.2 billion to reach a record high. However, this could not mask the harsh reality of a sharp decline in profit margins and massive AI capital expenditures (CapEx) turning free cash flow negative, which once again severely damaged…