TechCapsules

AI-summarised brief · reviewed before publication

Tesla reported a quarterly free cash flow deficit of $1.1 billion, driven by $5.8 billion in capital expenditures—more than double the same period a year earlier and twice the first‑quarter spend. The outflow was far below analysts’ $3.3 billion cash‑burn forecast, but it marked the first negative free cash flow reading after years of surplus. Despite the deficit, the automaker posted a GAAP net income of $1.114 billion and record revenue, while average selling prices fell and regulatory‑credit income declined. Elon Musk defended the spending, saying the massive capex year will generate “incredible returns.” The company still holds substantial cash reserves, leaving investors to watch whether the investments translate into renewed cash‑flow positivity.