Options Traders, Analysts React to Brutal Tesla Earnings

Tesla stock is now down over 25% in 2026 and is heading for its worst day since June 2025

Tesla (NASDAQ:TSLA) stock is big contributor to the Nasdaq Composite (IXIC) selloff today. The EV maker is down 11.6% to trade at $330.64, and earlier traded as low as $325.60. The shares are headed for their worst single-session decline since June 2025.

Tesla reported adjusted second-quarter earnings of 33 cents per share on $28.24 billion in revenue, the former of which fell short of estimates. More importantly, the company reported negative free cash flow as capital expenditures surged.

This morning, six analysts trimmed their price targets, the worst coming from UBS to $385. Considering the consensus 12-month price target of $392.17 is a 19% premium from its current perch and the stock is down 27% in 2026, more bear notes could pressure TSLA lower.

Options traders are rushing in, with weeklies flying off the shelf. At last look, 770,000 calls and 695,000 puts have changed hands, volume that’s double the average intraday amount. Leading the charge today though is the weekly 7/24 330-strike put, where new positions are being bought to open.