Tesla shares plunged up to 15% after weak quarterly earnings, triggering about $4.1 billion in one-day gains for short sellers. Concerns over AI spending, high valuation, and soft auto margins weighed on sentiment, though retail investors continued buying and some analysts see the decline as a long-term opportunity.

Tesla reported weaker-than-expected quarterly profits on Wednesday despite increased auto sales, depressing shares in after-hours trading amid questions over massive capital…

Shares fell 2.8 per cent after the closing bell on Wall Street

Tesla reported second-quarter profits of US$1.1 billion, down about 5 per cent from the year-ago level.

The decline is despite Tesla recording a 26pc growth in revenue, with EV sales alone bringing in more than $20bn.

Tesla and Alphabet shares fell after quarterly results as investors overlooked robust revenue growth and focused on weaker margins, missed earnings and rising AI spending. The…