"Tesla's Stock Plunges 10% as Margin Worries and Musk's Q3 Production Warning Emerge"
Tesla's stock tumbled nearly 10% after reporting lower-than-expected margins and CEO Elon Musk's warning of a slight dip in Q3 production due to factory upgrades. Despite beating revenue and earnings expectations, Tesla's gross margins came in at 18.2%, below analyst estimates, and its operating margin fell to 9.6%. Musk emphasized the long-term potential of autonomy and hinted at discussions with a major OEM to license Tesla's full-self driving software. The company also revealed progress on Cybertruck production and strong demand for the vehicle. Analysts had mixed reactions to the earnings report, with some considering it better than feared while others expressed concerns about pricing, production, and demand commentary.