Tesla shares fell more than 14% on Thursday after the company's quarterly earnings report failed to impress investors, according to the Economic Times Markets report published on July 24, 2026.

The decline came as investors focused on pressure on Tesla's profitability. The report cited higher operating expenses and accelerated spending on artificial intelligence as factors that weighed negatively on the automaker's results. Tesla, the world's most valuable automaker by market capitalization, has been ramping up investment in AI infrastructure and autonomous driving capabilities, positioning these areas as central to its growth thesis beyond vehicle sales.

Tesla's large capital expenditure plans also contributed to investor concerns following the earnings update. The company has been increasing spending tied to AI and self-driving technology, areas that are central to its long-term strategy. The heavy spend comes amid an increasingly competitive global electric vehicle market, where established automakers and newer entrants—particularly from China—have been intensifying price competition.

The sharp move in Tesla's stock also reduced Elon Musk's net worth by about $19 billion, according to the report. Musk is Tesla's chief executive officer and remains closely associated with the company's market performance. A significant portion of Musk's wealth is tied to his Tesla equity holdings, making his net worth particularly sensitive to the company's share price movements.

The original Economic Times Markets report is available at: https://economictimes.indiatimes.com/markets/us-stocks/news/elon-musk-loses-19-billion-after-tesla-shares-plunge-14-whats-spooking-investors/articleshow/132602375.cms