Tesla Drops 14.5%, Google Drops 7%: The Day the AI Bubble Cracked

Yesterday, two of the biggest tech giants on Earth reported earnings, and it triggered an absolute bloodbath on Wall Street—with Tesla crashing 14.5% in a single day.

U.S. stock markets suffered a major selloff on July 23 following Q2 earnings from Tesla and Alphabet. Tesla stock plummeted 14.5% after reporting a 57% drop in operating profit and negative free cash flow (-$1.1 billion). Alphabet shares fell 7.1% after management raised full-year 2026 capital expenditure guidance to $195–$205 billion.