Tesla Reports Mixed Q2 2026 Results as Revenue Surges but Margins Weaken

$TSLA reported $28.24 billion in revenue , beating estimates of $26.32 billion and rising 26% year over year .
However, adjusted EPS came in at $0.33 , below the $0.51 estimate. Gross margin fell to 16.8% , while operating margin dropped to just 1.4% as operating income declined 57% year over year.
Automotive revenue reached $20.52 billion , deliveries rose 25% to 480,126 vehicles , and active FSD subscriptions climbed 56% to 1.48 million .
Free cash flow was negative $1.09 billion , but still significantly better than the expected $3.25 billion outflow. Tesla ended the quarter with $43.52 billion in cash and investments , while capital expenditures surged 142% to $5.79 billion.
The company also reported continued progress across its AI and autonomy businesses:
Cybercab production has begun in Texas, robotaxi operations are expanding across major U.S. cities, and first-generation Optimus production lines are being installed.
Tesla also more than doubled its onsite AI compute capacity in Texas, while construction continues on its Austin semiconductor facility.
One notable boost: GAAP results included a $1.01 billion unrealized gain from Tesla’s SpaceX investment.
Despite the rapid expansion, $TSLA provided no new full-year guidance for deliveries, earnings, or capital expenditures.
Strong growth and major AI investments—but profitability remains the key concern.