** Tesla missed analysts' forecasts for second-quarter profit and, for the first time in more than two years, reported negative free cash flow (FCF) on Wednesday, as the EV maker accelerated spending on infrastructure for its AI and robotics ambitions

** Shares drop 5.6% to $353.05 premarket

THE STRUGGLE IS REAL

** Morgan Stanley ("equal weight," PT: $400) says Tesla's accelerating capex cycle is a necessary investment to secure leadership in autonomy and robotics, but the resulting deeper negative FCF increases investor focus on tangible robotaxi and Optimus milestones

** J.P.Morgan ("neutral," PT: $445) says TSLA shares are likely to remain range-bound near-term as forward estimate revisions continue to find a bottom as investments ramp

** "No longer the most prominent constituent of the Musk universe, Tesla continues to foster grand ambitions beyond its current focus on manufacturing electric vehicles," says AJ Bell investment director Russ Mould

** Canaccord Genuity ("buy," PT: $410) says, "we would like to see some material robotaxi deployments over the next 6 months (not just more geographies but many more vehicles), more
momentum around a SpaceX union, and more EV momentum"