The restless striker saw his spot-kick saved by Fernando Muslera, the goalkeeper, and Uruguay will now meet Peru in Tuesday's semi-final. Uruguay took an early lead through Diego Perez, who was then sent off seven minutes before half time. Argentina equalised through Gonzalo Higuain and saw Javier Mascherano red carded shortly before the end of the 90 minutes.
While Uruguay will fancy their chances of reaching the final, Tevez, meanwhile, will hope the Abu Dhabi-owned Manchester City accept Corinthians' bid for him by Wednesday, the final day of Brazil's transfer window. City want £45million for the striker, who lodged an official transfer request in January and restated his desire to leave City earlier this month, citing the difficulties of living apart from his daughters.
Corinthians have already had one bid rejected and hope to be successful with their latest offer of £35.1m rising to £38.6m.
Sergio Batista, the Argentina coach, is now likely to come under enormous pressure. Batista replaced Diego Maradona following the World Cup, and immediately after the match was asked if he planned to resign.
"I'm not thinking about that," he said. "It has never crossed by mind. I have to continue on the job. My job started five or six months ago, and I have to continue with my plans. The important thing is the (2014) World Cup.
"I can't be happy," he added. "One does not like to be eliminated. But I am content with my players."
Batista denied that a quarter-final exit could be considered a failure.
"It is not a failure because we did all we could to win, and it didn't happen," Batista said. "Failure is a strong word. We worked to win but couldn't do it."