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Tesla shares fell almost 18% this week, the company's steepest weekly decline since 2022, after it missed on earnings and reported negative cash flow.
SpaceX, the private rocket company also controlled by Elon Musk, dropped in the same period ahead of a scheduled Starship test flight.
What drove the Tesla selloff Tesla disclosed an earnings miss alongside negative cash flow for the period, the company said. The combination is what moved the stock.
An earnings miss alone can be absorbed when free cash flow stays positive. Investors can attribute a bad quarter to pricing decisions or capital cycles and hold their position.
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