Tesla 8-K
Earnings
AI R&D, CEO award costs and lower vehicle prices squeezed operating profit despite record deliveries; Cybercab production began.
Filed 2026-07-22 16:35 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results. Revenue rose 26% to $28.2B, with record vehicle deliveries and growth in services and energy; operating income declined as higher expenses, lower vehicle average selling prices and lower regulatory credit revenue offset those gains. Cybercab production began during the quarter, and unsupervised Robotaxi rides launched in Miami, Orlando and Tampa in July.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $28.2B | $22.5B | +26% |
| Operating income | $398M | $923M | -57% |
| Operating margin | 1.4% | 4.1% | -269 bp |
| Net income attributable to common stockholders (GAAP) | $1.11B | $1.17B | -5% |
| Net income attributable to common stockholders (non-GAAP) | $1.15B | $1.39B | -17% |
| Diluted EPS (GAAP) | $0.32 | $0.33 | -3% |
| Diluted EPS (non-GAAP) | $0.33 | $0.40 | -18% |
| Operating cash flow | $4.70B | $2.54B | +85% |
| Free cash flow | $(1.09)B | $146M | n/m |
| Vehicle deliveries | 480,126 | 384,122 | +25% |
- Revenue growth reflected increased deliveries, Services and Other and energy generation and storage, plus a $0.5B positive foreign-exchange impact; lower regulatory credits and vehicle average selling prices were offsets. Total GAAP gross margin was 16.8%, down 41 bp Y/Y.
- Operating expenses rose 47% to $4.35B, driven by AI and other R&D projects, stock-based compensation (including the 2025 CEO Performance Award) and selling, general and administrative expense. Higher energy warranty charges related to a vendor cell issue also weighed on operating income.
- Capital expenditures were $5.79B, up $3.30B Q/Q, contributing to negative free cash flow; cash, cash equivalents and short-term investments declined $1.2B Q/Q to $43.5B.
Guidance
Over time, Tesla expects AI, software and fleet-based profits to accelerate alongside hardware-related profits; Services and Other profit is expected to continue growing as the vehicle fleet expands and operating efficiency improves. No period or figures were specified.
Investor Takeaways
- Battery-pack capacity remains a stated constraint on near-term vehicle production; monitor capacity expansion and the resulting delivery ramp.
- Tesla says Tesla Semi, Megapack 3 and Optimus production are scheduled to start in 2026; progress against those timelines and further Robotaxi expansion are upcoming milestones.
The summary is written by an AI model reading the filing.
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