Tesla (TSLA) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 deliveries and surpassed $100B in trailing twelve-month revenue, with Model Y becoming the best-selling car globally and strong demand for FSD features driving sales.

• Revenue for Q2 2026 was $28.24B, up 26% year-over-year; net income attributable to common stockholders was $1.11B, down 5% from Q2 2025.

• Major CapEx cycle underway, with over $25B expected in 2026, focused on scaling Robotaxi, Optimus, semiconductor fabs, and solar capacity.

• Robotaxi program expanded to seven U.S. markets, maintaining an impeccable safety record over 380,000 unsupervised miles, and Cybercab production began.

• Optimus humanoid robot production ramping up, with unique supply chain challenges and ambitious vertical integration plans.

Financial highlights

• Total revenue rose 26% year-over-year to $28.24B, driven by increased vehicle deliveries, services growth, and positive FX impact.

• Automotive gross margins (excluding credits) declined sequentially from 19.2% to 16.3%, mainly due to absence of prior quarter benefits and rising costs.

• Energy storage deployments reached 22.3 GWh in H1 2026, up 53% sequentially, but energy gross margins fell from 39.5% to 20.4% due to warranty true-ups, tariffs, and lower ASPs.

• Service and other margins improved to an all-time high of 14.1% from 9.2% sequentially, with services and other revenue rising 50% to $4.58B.

• Free cash flow was negative, driven by more than doubling of CapEx sequentially; quarter-end cash and investments totaled $43.5B.

Outlook and guidance

• CapEx expected to exceed $25B in 2026 and continue growing for 2–3 years to support expansion in Robotaxi, Optimus, semiconductor, solar, and AI infrastructure.

• Operating expenses, primarily R&D, will continue to rise as new products ramp.

• Energy business gross margins expected to normalize in the mid to low 20% range long term.

• Robotaxi and Optimus production to scale rapidly, with exponential growth in unsupervised Robotaxi miles and ambitious targets for Optimus units.

• Management anticipates continued cash flow generation but may seek additional funding for high-value projects.