Open account

Cybertruck Called the Biggest Flop in Automotive History, as Tesla Shares Plummet

Tesla shares sold off sharply after a weak second-quarter report and renewed criticism of the Cybertruck’s commercial performance. The article says the Cybertruck is now being compared unfavorably with Ford’s Edsel, as deliveries missed Elon Musk’s 250,000-unit annual target by a wide margin and fell sharply in 2025 and early 2026. Tesla reported Q2 adjusted EPS of $0.33 versus consensus of $0.5367, while free cash flow turned negative at $1.09 billion and operating income dropped 56.88% year over year. Revenue still grew to $28.24 billion on record deliveries, but higher spending on AI, R&D and stock compensation pressured margins and investor sentiment. The stock fell as much as 12% on the day and was down 17.81% for the week, reflecting concern that Tesla is increasingly reliant on future promises rather than near-term execution.

Category

Tesla

Sentiment

Bearish

Event

Price movement

Reading time

1 min