Tesla and SpaceX Stocks Decline in July

Elon Musk's companies, Tesla and SpaceX, have faced substantial market declines throughout July. As of the close of markets on July 31, 2026, Tesla's stock price had fallen approximately 24% since June 30, while SpaceX's stock saw a decline of roughly 31% over the same period. The most significant downturn for Tesla occurred on July 31, 2026, when its stock price crashed by over 14.5% in a single trading session, closing at $319.69, a decrease of $54.32 from the previous day.

This sharp decline in Tesla's stock price is largely attributed to its second-quarter fiscal year 2026 earnings report. While the company announced revenue of $28.24 billion, exceeding LSEG analyst expectations of $25.71 billion and representing 26% growth year-over-year, its actual earnings per share (EPS) fell short. Tesla reported an adjusted EPS of 33 cents, significantly lower than the LSEG consensus estimate of 51 cents. The company's total net income for the quarter decreased by approximately 5% compared to the same quarter in the previous year, totaling $1.11 billion.

Several factors contributed to Tesla's weaker-than-expected earnings, including discounted vehicle pricing implemented to stimulate sales and a reduction in regulatory credit revenue. Additionally, investors were reportedly concerned by a substantial surge in Tesla's capital expenditure (capex). For the second quarter of fiscal year 2026, capex increased by 142% to $5.79 billion, partly driven by investments in artificial intelligence infrastructure and robotics research and development. The specific impact of SpaceX's stock decline on July 31, 2026, beyond the overall 31% drop since June 30, was not detailed in the provided text.