Tesla reported strong second-quarter vehicle deliveries, but investors are focusing on profitability and the company’s transformation into an artificial intelligence company. Electric vehicle deliveries increased by 25% year over year to 480,126 vehicles, and revenue grew by 26% to a record $28.24 billion, exceeding analysts’ expectations. However, earnings per share came in at just $0.33, compared to the $0.51 expected, while net income declined by 5% to $1.11 billion. Tesla stock fell by more than 4% after the results. The automotive segment generated $20.52 billion in revenue, the energy business increased revenue by 13% to $3.14 billion, and the service division grew by 50% to $4.58 billion. The gross margin fell from 17.2% to 16.8%, below the expected 19.4%, pressured by a lower average selling price, a decline in regulatory credits from $439 million to $146 million, and a sharp increase in costs. Operating expenses jumped by 47% to $4.35 billion, partly for preparing mass production of Optimus humanoid robots and Cybercab robotaxis. Operating profit declined by 57% to $398 million. Capital expenditures increased by 142% to $5.79 billion, and free cash flow turned negative at -$1.1 billion. Tesla expects to invest more than $25 billion by year-end. Elon Musk