Tesla's Operating Margin Just Fell to 1.4% and Free Cash Flow Went Negative. Here's Where the Money Is Going.
A record quarter for revenue was also the thinnest for profit in a while. But the spending behind that gap is the real story.
Overview
Tesla (NASDAQ: TSLA) investors got both halves of the company's story in one report on Wednesday, and they pulled in opposite directions. Revenue rose 26% year over year to $28.2 billion, powered by record second-quarter deliveries of 480,126 vehicles. The company even crossed $100 billion in trailing-12-month revenue for the first time.
But operating income fell 57% year over year to $398 million, leaving an operating margin of just 1.4%. A year ago, that figure was 4.1%.
Details
The market didn't take it well. Shares of the electric carmaker sank about 14% Thursday as of this writing.
Source
Originally published at www.fool.com.
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