Southern 2x Short Tesla (07366) continued its rally, surging over 6% to trade at HK$13.52, with a trading volume of HK$2.2288 million. This movement follows Tesla's second-quarter earnings report, which showed total revenue of $28.236 billion, up 26% year-over-year and exceeding market expectations.

However, the company's gross margin fell to 16.8%, down from 21.1% in the first quarter. Net profit totaled $1.114 billion, a decline of approximately 5% year-over-year. Excluding gains from SpaceX equity and tax-related adjustments, Tesla's GAAP profit was just $77 million.

A key concern was capital expenditure. While Tesla's operating cash flow reached $4.697 billion in the second quarter, growing both quarter-over-quarter and year-over-year, capital expenditures surged to $5.789 billion—a 142% increase year-over-year. This investment pace far outpaced the growth in operating cash flow.

As a result, Tesla's free cash flow flipped from a positive $146 million in the same period last year to a negative $1.092 billion, marking the company's first quarter of negative free cash flow in over two years.