--- title: "US Markets Midday: Tesla Plunges 13%, Dow Drops Over 600 Points as AI Capex Anxiety Spreads" type: "News" locale: "en" url: "https://longbridge.com/en/news/293645425.md" description: "Tesla plunges 13% on Q2 earnings miss; Alphabet slides 6%+ as AI capex drives first negative free cash flow since IPO; Dow drops over 600 points; Brent crude tops $100/bbl on Mideast tensions." datetime: "2026-07-23T16:23:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293645425.md) - [en](https://longbridge.com/en/news/293645425.md) - [zh-HK](https://longbridge.com/zh-HK/news/293645425.md) --- # US Markets Midday: Tesla Plunges 13%, Dow Drops Over 600 Points as AI Capex Anxiety Spreads US equities traded sharply lower on July 23, with all three major indexes sliding. A disappointing Tesla earnings report and mounting anxiety over the return on massive AI capital expenditures triggered a broad sell-off in technology stocks. The Dow Jones Industrial Average tumbled more than **600 points** intraday, the Nasdaq posted steep losses, and the S&P 500 fell in tandem. Brent crude surged above **$100 per barrel**, as escalating geopolitical tensions in the Middle East further weighed on market sentiment. Across sectors, the EV space was hammered by Tesla's plunge, while AI and technology names fell broadly. Traditional cyclical sectors showed relative resilience, with steelmaker Cleveland-Cliffs surging nearly **20%**. Overall risk appetite contracted sharply, driving an exodus of capital out of high-valuation growth equities. **Tesla Q2 Earnings Far Below Estimates; Stock Tumbles Over 13%** As of the latest reading, Tesla (TSLA) plunged **13.14%** to **$324.85** on volume exceeding **66.83 million shares**. Rivian (RIVN) fell **3.12%** to **$11.25**. Tesla reported Q2 adjusted earnings per share of **$0.33**, well below the consensus estimate of $0.50, even as revenue of **$28.24 billion** came in slightly above expectations. Operating margin narrowed dramatically to just **1.4%**, while surging capital expenditures pushed free cash flow into negative territory. Former President Jon McNeill attributed the margin compression to aggressive discounting strategies aimed at sustaining revenue growth. Additionally, Elon Musk's updates on Optimus robots and Robotaxi scalability fell short of expectations, and he warned of significantly higher cash burn ahead. Tesla shed roughly **$200 billion** in market capitalization in a single day, marking its worst post-earnings performance since 2013. **Alphabet Drops Over 6% as AI Capex Devours Cash Flow** As of the latest reading, Alphabet (GOOGL) dropped **6.22%** to **$320.82** on volume exceeding **41.38 million shares**. Nvidia (NVDA) slipped **1.35%** to **$209.19**. Alphabet reported its most profitable quarter ever yet posted its first negative free cash flow since its IPO, driven by AI infrastructure capital expenditures surging to **$44.9 billion**, with full-year capex guidance set at **$195 billion to $205 billion**. Analyst Richard Windsor described the profit growth as "illusory," noting that a portion of the gains stemmed from unrealized gains on equity investments in SpaceX and Anthropic. Separately, Alphabet announced it would begin selling custom TPU systems directly to customers, formally entering the on-premise AI chip market and setting up direct competition with Nvidia. **Cleveland-Cliffs Soars Nearly 20%, Bucking the Downtrend** As of the latest reading, Cleveland-Cliffs (CLF) surged **19.95%** to **$11.34** on volume exceeding **32.68 million shares**, emerging as one of the few bright spots in the session. Elsewhere, QuantumScape (QS) sank **13.63%** to $5.07; American Airlines (AAL) dropped **7.91%** to $13.62; Opendoor (OPEN) fell **10%** to $3.94. Chinese small-cap SXTC cratered nearly **84%**, while Lucas GC (LGCL) rocketed nearly **65%** in the opposite direction. On the macro front, former President Trump warned Iran would be held accountable if Houthi forces launch attacks, Brent crude broke above $100 per barrel stoking inflation fears, and gold slid more than **2%**. ### Related Stocks - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [CLF.US](https://longbridge.com/en/quote/CLF.US.md) - [RIVN.US](https://longbridge.com/en/quote/RIVN.US.md) - [QS.US](https://longbridge.com/en/quote/QS.US.md) - [AAL.US](https://longbridge.com/en/quote/AAL.US.md) - [OPEN.US](https://longbridge.com/en/quote/OPEN.US.md) ## Related News & Research - [Nvidia Just Launched a Product That Will Drive Future AI Factories. SpaceX and Tesla Already Want In.](https://longbridge.com/en/news/293760728.md) - [Tesla Debuts Its Robotaxis in Orlando and Tampa. 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