Tesla reported mixed second-quarter results, with revenue topping Wall Street estimates while adjusted earnings missed expectations, sending shares down about 6% in early Thursday trading. Tesla posted adjusted earnings of 33 cents per share, below analysts' consensus estimate of 51 cents. Revenue rose 26% year over year to $28.24 billion, exceeding expectations of $25.71 billion. Net income declined about 5% to $1.11 billion, while automotive revenue increased 23% to $20.52 billion. Gross margin narrowed to 16.8% from 17.2% a year earlier, falling short of analyst estimates of 19.4%. Operating margin declined to 1.4% as operating expenses climbed 47% amid higher spending on artificial intelligence, semiconductor development and other research initiatives. Free cash flow turned negative at $1.1 billion, compared with positive free cash flow a year earlier. Capital expenditures rose 142% year over year to $5.79 billion as Tesla continued investing in AI computing, battery manufacturing, semiconductor production and other infrastructure projects. Full Self-Driving subscriptions increased 56% from a year earlier to about 1.48 million, while production of its Cybercab and Optimus humanoid robot programs continues to advance.