Shares of the CSOP Double Short Tesla (07366) ETF surged more than 15% in early trading, reaching 12.84 Hong Kong dollars, a gain of 15.05% with a trading volume of 2.78 million Hong Kong dollars.

Tesla released its second-quarter earnings, reporting revenue of $28.24 billion, which exceeded market expectations and marked a 26% year-on-year increase, the first time in three years that revenue growth has surpassed 20%. However, operating profit, earnings per share, and gross margins all fell significantly short of forecasts. The company's free cash flow turned negative at $1.09 billion for the quarter, the first negative single-quarter figure since the first quarter of 2024. This was primarily driven by massive capital expenditures on projects such as AI infrastructure, the Robotaxi, and the Optimus humanoid robot.

In a research note, BNP Paribas analyst James Picariello stated, "As Tesla pursues its ambitious AI goals with an extremely aggressive capital spending pace, we remain highly cautious about the speed of its AI progress acceleration, and the stock's valuation already incorporates very high expectations." He maintained a Sell-equivalent rating and a price target of $280.