Tesla achieved record deliveries of 480,126 vehicles in the second quarter, though analysts anticipate a $3.3 billion negative free cash flow. This shift comes as the company increases its 2026 capital budget to over $25 billion, primarily targeting AI, robotics, and the Cybercab.

Tesla shares fell sharply despite exceeding quarterly delivery targets as investors reevaluate the company's valuation tied to AI and autonomous technology.