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Tesla (TSLA) Q2 2026 earnings report
CNBC • • general
Key Points:
- Tesla reported Q2 earnings per share of 33 cents, falling short of the 51 cents expected by analysts, while revenue beat estimates at $28.24 billion versus $25.71 billion anticipated.
- Despite a 26% year-over-year revenue increase, net income declined 5% to $1.11 billion, with automotive revenue up 23%, energy business revenue up 13%, and services revenue surging 50%.
- Gross margin dropped to 16.8%, missing the expected 19.4%, due to lower average vehicle selling prices and reduced regulatory credit revenue, even as Tesla introduced lower-cost Model 3 and Y versions.
- Operating expenses rose 47% to $4.35 billion, driven by investments in AI and R&D, contributing to a negative free cash flow of $1.1 billion for the quarter, compared to positive cash flow in prior periods.
- Capital expenditures surged 142% to $5.79 billion as Tesla focuses on expanding infrastructure for AI, solar, battery materials, and semiconductor manufacturing, with plans for over $25 billion in capex this year.
