Nasdaq 100: Tesla, Alphabet and $100 Oil Put Tech Stocks Under Pressure
Tesla fell more than 7% in premarket after a large second-quarter earnings miss. Operating expenses rose faster than revenue and the company posted negative free cash flow. Capital expenditures hit $5.79 billion during the quarter, up 142% from a year ago, and management still expects more than $25 billion in total spending this year across AI infrastructure, semiconductor production, Optimus and the robotaxi buildout.
The auto business produced $20.52 billion in revenue, up 23% from a year ago, and that is the number keeping this from turning into a complete collapse. But the market is not paying Tesla’s valuation for a solid auto quarter. It is paying for physical AI and autonomous driving and both of those are consuming cash faster than they are producing revenue.
Tesla is trading near $344.90 in the premarket, putting it in position to challenge the April 7 main bottom at $337.24 during the cash session. A breakdown under that level could lead to further downside pressure with a sub-$300 trade possible over the near term.