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 shares fell nearly 3% after hours after second quarter adjusted earnings and margins missed expectations despite record revenue and deliveries.

Revenue came in at $28.2 billion, which was 28% higher than last year (well above expectations of $26.4 billion)...

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.