Tesla (TSLA) stock tumbled early Thursday after the EV maker reported mixed second quarter results that missed Wall Street expectations. However, its cash burn rate was less than expected. Investors may be looking for more on its physical AI build-outs.

Tesla reported Q2 revenue of $28.24 after the closing bell on Wednesday, versus the $26.32 billion expected per Bloomberg consensus, up 26% from a year ago. Tesla posted adjusted earnings per share of $0.33 compared with the $0.50 estimated. Adjusted EBITDA came in at $3.2 billion, versus $4 billion expected.

Tesla stock slid more than 10% in early trade on Thursday as investors weighed the earnings miss alongside the company's physical AI efforts.

Tesla said Optimus humanoid robot production remains on track for later this year. "The initial Optimus builds will be used in our Optimus Academy for training data collection and further functionality development," the company said in a statement, but Tesla did not indicate when the latest version of Optimus would be revealed.

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Tesla also confirmed that its Robotaxi rollout spanned seven major metro areas. "We expanded the unsupervised operation area in Austin and launched unsupervised rides in Miami, Orlando, and Tampa in July," the company said. "Preparation for expansion of our Robotaxi service to additional U.S. metros continued, including testing, permitting and first responder training."

"We'll continue to scale very rapidly with Robotaxi — more than 10% growth in miles driven per week," CEO Elon Musk said on the earnings call, acknowledging that safety considerations will limit its growth.

A Tesla Optimus robot is displayed next to a logo at the company's booth at the 8th China International Import Expo in Shanghai, China, on Nov. 6, 2025. (Reuters/Maxim Shemetov) · REUTERS / Reuters

Full self-driving active subscriptions climbed to 1.48 million, up 56% from a year ago, Tesla said.

"TSLA noted Cybercab/robotaxi production began at Giga Texas with Cybercab now at 380K + unsupervised miles across 7 cities, and we believe the key is no major incidents, although we believe the number of cybercabs/Robotaxis (~25-50) are significantly smaller than Waymo (2-3K)," Mizuho analyst Vijay Rakesh said in a note late Wednesday night.

Mizuho however cut its Tesla price target to $450 from $480, citing near term challenges like tariffs and loss of tax credits.

Tesla's free cash flow burn continued in the quarter, though it was less than expected, coming in at -$1.09 billion versus -$3.64 billion estimated. Musk added that 2026 would be a "massive capex year," and CFO Vaibhav Taneja confirmed that Tesla's capex would be "more than $25 billion" this year. Analysts expected full-year capital expenditures to hit $25.16 billion.