ETF Volatility | Southern 2X Short Tesla rises over 6% again, Q2 profits fall short of expectations, capital expenditures drag free cash flow into negative
Southern 2X Short Tesla rose over 6% again, as of the time of writing, up 6.21%, reported at HKD 13.52, with a trading volume of HKD 2.2288 million. In terms of news, Tesla's Q2 performance showed total revenue reached USD 28.236 billion, a year-on-year increase of 26%, exceeding market expectations. However, the gross margin was 16.8%, lower than the 21.1% in the first quarter; the company's net profit totaled USD 1.114 billion, a year-on-year decrease of about 5%. Excluding the book gains from SpaceX equity and tax-related adjustments, Tesla's GAAP profit was only USD 77 million. Notably, in the second quarter, Tesla's operating cash flow was USD 4.697 billion, showing growth both quarter-on-quarter and year-on-year. During the same period, Tesla's capital expenditures reached USD 5.789 billion, a year-on-year increase of 142%, with the investment growth rate far exceeding the growth rate of operating cash flow. As a result, Tesla's free cash flow turned from USD 146 million in the same period last year to negative USD 1.092 billion, marking the company's first quarterly negative free cash flow in over two years
According to the Zhitong Finance APP, the Southern 2X Short Tesla (07366) has risen over 6% again, reaching a 6.21% increase as of the time of writing, priced at HKD 13.52, with a trading volume of HKD 2.2288 million.
On the news front, Tesla's Q2 performance showed total revenue of USD 28.236 billion, a year-on-year increase of 26%, exceeding market expectations. However, the gross margin was 16.8%, lower than the 21.1% in the first quarter; the company's net profit totaled USD 1.114 billion, a year-on-year decrease of about 5%. Excluding the equity gains from SpaceX and tax-related adjustments, Tesla's GAAP profit was only USD 77 million.
It is noteworthy that in the second quarter, Tesla's operating cash flow was USD 4.697 billion, showing growth both quarter-on-quarter and year-on-year. During the same period, Tesla's capital expenditures reached USD 5.789 billion, a year-on-year increase of 142%, with the investment growth rate far exceeding the growth rate of operating cash flow. As a result, Tesla's free cash flow turned from USD 146 million in the same period last year to negative USD 1.092 billion, marking the first time in over two years that the company has reported negative quarterly free cash flow
