Elon Musk’s Tesla posts cash burn as capex surges on AI, robotaxi push

Tesla reported negative free cash flow in the second quarter for the first time in more than two years as the Elon Musk-led EV maker accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing.

Tesla reported negative free cash flow of $1.1 billion, compared with analysts’ expectation for cash burn of $3.3 billion, according to data compiled by LSEG. Tesla delivered 480,126 vehicles in the second quarter, above Wall Street expectations and up from 384,122 vehicles a year earlier. The company produced 451,758 vehicles, meaning deliveries outpaced production by ‌more than 28,000 vehicles during ⁠the ⁠quarter, reversing the inventory build seen earlier in the year.