← July 23, 2026 briefingEconomy
Tesla Profits Slump as Google Burns $6 Billion on AI
Tesla's Q2 profits cratered despite rising revenues, with heavy discounting on EVs squeezing margins as Musk pivots capital toward autonomous taxis, semiconductors, and humanoid robots — shares dropped more than 3% after hours. Meanwhile Google reported a $6 billion cash burn last quarter and raised its 2026 AI investment commitment to $205 billion, though its cloud business hit record profits, suggesting the bet is at least partly paying off.
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