Tesla misses on earnings despite revenue beat

Tesla reported weaker-than-expected earnings for the second quarter even as revenue topped estimates. The stock slid in extended trading on Wednesday.

Here's how the company did compared to Wall Street expectations, according to estimates from analysts polled by LSEG

• Earnings per share: 33 cents adjusted vs. 51 cents expected
• Revenue: $28.24 billion vs. $25.71 billion expected

Tesla'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. 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 in the period jumped 26% 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.

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.

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