Tesla reported lower-than-expected profits in the second quarter of 2026, marking another setback after a 14% loss this year. Earnings per share were 31 cents, while Wall Street predicted 51 cents. Following the release, Tesla's stock fell by over 3%, and SpaceX and Tesla together are down about 26%. Elon Musk became the world's first trillionaire in June 2026, but Tesla's stock is dipping despite profits from his AI and rocket company. The company faces pressure from cheap Chinese automobiles entering the global market, aided by the electric market booming due to the US-Iran War. Chinese automakers are succeeding in this opportunity, causing setbacks for Tesla despite its push into AI services.